Inflation, bloating GDP with public spending and immigration and hidden unemployment are the ingredients of the so-called “economic miracle” of the Sánchez administration.

Spain closes 2025 with the consumer price index (CPI) rate above the euro area average and higher than all the large economies in Europe.

Cumulative inflation, measured by CPI, during Sánchez’s term reached 24.8%. Housing and food have risen by almost twice as much as the headline CPI.

The reality of Spain is that the loss of purchasing power and the impoverishment of Spaniards are the result of years of interventionist policies.

Home purchase prices have soared by more than 38%, housing-related expenses (rent, utilities, maintenance) have risen by more than 30%, and food prices are up around 38%.

The “real shopping basket” studies find increases of between 40% and 60% in basic products between 2019 and 2025, showing that inflation in essential goods has been far higher than the official average.

Between 2019 and 2025, real wages in Spain have fallen by 0.3%, according to CaixaBank, but the picture is much worse if we look at net real wages, which have fallen by more than double because the government refused to index taxes to inflation and has sharply increased the fiscal burden of families and businesses.

The latest social financing figures from China show an economy that is increasingly relying on government debt while private demand for credit remains weak. The strength of the Chinese technology sector and its exporting companies gives enough room for leverage. However, behind the weak private sector credit demand lies an evident economic slowdown that the Chinese government acknowledges, challenging consumption patterns, a significant overcapacity problem, and the depth of the housing crisis.

The current economic model, focused on delivering 5% real economic growth, requires larger doses of debt to achieve smaller increments of growth, especially productive sector growth. The government has focused on reducing debt and overcapacity imbalances while reorienting its exports and financial system to lessen dependence on the US dollar; however, the main challenge for the Chinese economy remains boosting consumer demand, despite rate cuts and easing financial conditions.

The Spanish Prime Minister, Pedro Sánchez, has appeared at a summit along with autocratic and undemocratic leaders from Georgia and Burundi to talk about protecting citizens and democracy. Fascinating. It is very revealing.

The president talks about protecting minors from the harms of social networks and launches tirades against alleged techno-oligarchs. However, the evidence shows that beneath the supposedly “noble” goal of protecting minors, there is an agenda that includes the introduction of digital identities, biometric control for all, and prior censorship accompanied by state surveillance.

It is obvious to everyone that the objective is to silence independent media.

The IMF estimates for 2026 show no signs of recession. However, the global economy remains in a period of poor growth, high debt, persistent inflation and low productivity.

There may not be a recession, but citizens feel poorer as net real wages decline in most economies, remaining below pre-pandemic levels. Why? Because in most developed economies, GDP growth is bloated by government spending, which means high debt, followed by rising taxes that hurt investment and productivity.

The IMF has had to revise its United States estimates to more than double what they expected in early 2025, while Argentina clearly outperforms both the global and regional averages.

Global GDP growth is projected at 3.3% in 2026 and 3.2% in 2027, slightly above the October 2025 projections and broadly in line with 2025 levels.