{"id":80472,"date":"2026-03-22T08:45:00","date_gmt":"2026-03-22T07:45:00","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=80472"},"modified":"2026-03-20T12:57:16","modified_gmt":"2026-03-20T11:57:16","slug":"why-is-the-economy-doing-well-but-people-feel-its-doing-badly","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2026\/03\/22\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\/","title":{"rendered":"Why is the economy doing well\u2026 but people feel it\u2019s doing badly?"},"content":{"rendered":"\n<p>In recent months, a paradox has taken hold that\u2019s hard to ignore. Macroeconomic data points to growth, job creation, and more contained inflation, yet the economic perception of a significant part of the population remains negative. Many people feel their economic situation isn\u2019t improving: money stretches less, saving feels harder, and the future looks uncertain. This gap between statistics and lived experience reflects concrete economic factors that help explain why the economy can be doing well while people feel it\u2019s doing badly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Positive macro data, uneven impact<\/h2>\n\n\n\n<p>From an aggregate perspective, the economy has behaved relatively solidly. Economic growth has been above the European average and employment has reached high levels, while headline inflation has moderated after the sharp spikes of previous years. However, this hasn\u2019t automatically translated into a clear improvement in well-being. Wages have risen since 2019\u2014<a href=\"https:\/\/www.elindependiente.com\/economia\/2025\/11\/16\/por-que-espanoles-no-notan-economia-cohete\/\" target=\"_blank\" rel=\"noreferrer noopener\">around 20%, according to Spain\u2019s Labour Cost Survey (INE)<\/a>\u2014but they started from relatively low levels compared with other European countries and, in many cases, that progress has been absorbed by the rising cost of living.<\/p>\n\n\n\n<p>Still, growth doesn\u2019t show up in daily life because it isn\u2019t distributed evenly. GDP measures how much a country produces, not how that growth is shared or how it translates into real income per person. Added to this is <strong>the cumulative effect of inflation<\/strong>. Even if inflation is now more contained, prices have not returned to previous levels. The sustained rise in the cost of basic goods and services has eroded <strong>purchasing power<\/strong>: many households pay more for the same things than they did a few years ago, even if their wages have increased slightly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Housing, essential prices, and the loss of purchasing power<\/h2>\n\n\n\n<p>If there is one factor that best explains the disconnect between data and perception, it\u2019s housing. <strong><a href=\"https:\/\/blog.urbanitae.com\/en\/2025\/12\/01\/how-does-spain-compare-to-other-countries-in-housing-accessibility\/?utm_source=blog_en&#038;utm_medium=organic&#038;utm_campaign=urbanitae_blog_0226&#038;utm_term=the_sharp_rise_rental&#038;utm_content=en_por_que_economia_bien_pero_gente_siente_mal\" target=\"_blank\" rel=\"noreferrer noopener\">The sharp rise in rental<\/a> and purchase prices has absorbed a growing share of incomes<\/strong>, especially in urban areas. When housing, utilities, and food account for most of a household\u2019s financial effort, any wage improvement is quickly neutralized.<\/p>\n\n\n\n<p>This pressure on essential expenses explains the feeling of <strong>lost purchasing power despite growth<\/strong>. It\u2019s not only about how much you earn, but how much remains after covering the basics. In that context, the message that \u201cthe economy is doing well\u201d clashes with everyday reality: tighter budgets and less ability to save.<\/p>\n\n\n\n<p>Moreover, the impact is not the same for everyone. <a href=\"https:\/\/blog.urbanitae.com\/en\/2023\/12\/24\/three-traps-to-avoid-for-young-investors\/?utm_source=blog_en&#038;utm_medium=organic&#038;utm_campaign=urbanitae_blog_0226&#038;utm_term=young_people&#038;utm_content=en_por_que_economia_bien_pero_gente_siente_mal\" target=\"_blank\" rel=\"noreferrer noopener\">Young people<\/a>, families with recent rental contracts, or households with less financial slack feel this gap more intensely, reinforcing a negative economic perception even during expansion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The real economy, expectations, and consumer confidence<\/h2>\n\n\n\n<p>Another key is the <strong>difference between the real economy and the financial economy<\/strong>. Macro indicators and markets often react earlier and faster than wages or living conditions. <strong>Growth can exist without its effects reaching household finances immediately<\/strong>.<\/p>\n\n\n\n<p>On top of that comes the role of expectations. Consumer confidence remains fragile <strong>after years of back-to-back crises: the pandemic, high <a href=\"https:\/\/ec.europa.eu\/eurostat\/web\/products-euro-indicators\/w\/2-18032026-ap\" target=\"_blank\" rel=\"noreferrer noopener\">inflation<\/a>, and geopolitical uncertainty<\/strong>. Recent economic memory weighs more than current data. People compare their situation to a few years ago\u2014and to what they expect from the <a href=\"https:\/\/blog.urbanitae.com\/en\/2025\/06\/08\/how-to-invest-for-your-childrens-future-long-term-financial-products\/?utm_source=blog_en&#038;utm_medium=organic&#038;utm_campaign=urbanitae_blog_0226&#038;utm_term=future&#038;utm_content=en_por_que_economia_bien_pero_gente_siente_mal\" target=\"_blank\" rel=\"noreferrer noopener\">future<\/a>; if that comparison is negative, perception will be negative too.<\/p>\n\n\n\n<p>Part of this gap may be cyclical, driven by the delay with which wages and real incomes respond to growth. But there are also more structural elements\u2014such as difficult access to housing or reduced room for savings\u2014that make <strong>the sense of stagnation persist<\/strong> even when the economy advances.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Purchasing power rather than GDP<\/h2>\n\n\n\n<p>The economy can grow and, at the same time, generate discomfort. That isn\u2019t a contradiction\u2014it\u2019s a consequence of how growth is measured and how it\u2019s lived. Macro data is necessary to understand a country\u2019s direction, but it isn\u2019t enough to explain households\u2019 day-to-day experience.<\/p>\n\n\n\n<p>Understanding this gap helps explain why economic perception remains negative despite good indicators. And it\u2019s a reminder that <strong>the true thermometer of progress isn\u2019t only GDP, but purchasing power<\/strong>, stability, and the real ability to plan the future with confidence\u2014without giving up.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Growth can look strong on paper while everyday costs keep tightening budgets. Housing, essential goods, and real wages explain the disconnect.<\/p>\n","protected":false},"author":22,"featured_media":83570,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1024,1027],"tags":[889,2104],"class_list":["post-80472","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-crowdfunding-en","category-real-estate-investment-en","tag-housing","tag-inversion-inmobiliaria"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why is the economy doing well\u2026 but people feel it\u2019s doing badly?<\/title>\n<meta name=\"description\" content=\"The economy is growing, but your wallet doesn\u2019t feel it. 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Here\u2019s why\u2014and how housing, essential prices, and wages are holding households back.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blog.urbanitae.com\/en\/2026\/03\/22\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\/\" \/>\n<meta property=\"og:site_name\" content=\"Urbanitae Blog | The best real estate investment news\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/urbanitae\" \/>\n<meta property=\"article:published_time\" content=\"2026-03-22T07:45:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.urbanitae.com\/wp-content\/uploads\/2026\/03\/va-la-economia-bien.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1400\" \/>\n\t<meta property=\"og:image:height\" content=\"735\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Luc\u00eda Hern\u00e1ndez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@urbanitae\" \/>\n<meta name=\"twitter:site\" content=\"@urbanitae\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Luc\u00eda Hern\u00e1ndez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/2026\\\/03\\\/22\\\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/2026\\\/03\\\/22\\\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\\\/\"},\"author\":{\"name\":\"Luc\u00eda Hern\u00e1ndez\",\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/#\\\/schema\\\/person\\\/4ca5d466abe187a25e51ad000cf7f15d\"},\"headline\":\"Why is the economy doing well\u2026 but people feel it\u2019s doing badly?\",\"datePublished\":\"2026-03-22T07:45:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/2026\\\/03\\\/22\\\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\\\/\"},\"wordCount\":695,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/2026\\\/03\\\/22\\\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/blog.urbanitae.com\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/va-la-economia-bien.webp\",\"keywords\":[\"housing\",\"inversi\u00f3n inmobiliaria\"],\"articleSection\":[\"Real estate crowdfunding\",\"Real estate investment\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/2026\\\/03\\\/22\\\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\\\/#respond\"]}]},{\"@type\":[\"WebPage\",\"ItemPage\"],\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/2026\\\/03\\\/22\\\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\\\/\",\"url\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/2026\\\/03\\\/22\\\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\\\/\",\"name\":\"Why is the economy doing well\u2026 but people feel it\u2019s doing badly?\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/2026\\\/03\\\/22\\\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/blog.urbanitae.com\\\/en\\\/2026\\\/03\\\/22\\\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/blog.urbanitae.com\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/va-la-economia-bien.webp\",\"datePublished\":\"2026-03-22T07:45:00+00:00\",\"description\":\"The economy is growing, but your wallet doesn\u2019t feel it. 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Here\u2019s why\u2014and how housing, essential prices, and wages are holding households back.","breadcrumb":{"@id":"https:\/\/blog.urbanitae.com\/en\/2026\/03\/22\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/blog.urbanitae.com\/en\/2026\/03\/22\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/blog.urbanitae.com\/en\/2026\/03\/22\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\/#primaryimage","url":"https:\/\/blog.urbanitae.com\/wp-content\/uploads\/2026\/03\/va-la-economia-bien.webp","contentUrl":"https:\/\/blog.urbanitae.com\/wp-content\/uploads\/2026\/03\/va-la-economia-bien.webp","width":1400,"height":735,"caption":"\u00bfPor qu\u00e9 la econom\u00eda va bien\u2026 pero la gente siente que va mal? Why is the economy doing well\u2026 but people feel it\u2019s doing badly? Pourquoi l\u2019\u00e9conomie va bien\u2026 mais les gens ont l\u2019impression qu\u2019elle va mal ? Warum geht es der Wirtschaft gut\u2026 aber viele Menschen f\u00fchlen sich, als ginge es ihr schlecht? Perch\u00e9 l\u2019economia va bene\u2026 ma molte persone sentono che va male? Por que a economia vai bem\u2026 mas muitas pessoas sentem que vai mal?"},{"@type":"BreadcrumbList","@id":"https:\/\/blog.urbanitae.com\/en\/2026\/03\/22\/why-is-the-economy-doing-well-but-people-feel-its-doing-badly\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Portada","item":"https:\/\/blog.urbanitae.com\/en\/"},{"@type":"ListItem","position":2,"name":"Why is the economy doing well\u2026 but people feel it\u2019s doing badly?"}]},{"@type":"WebSite","@id":"https:\/\/blog.urbanitae.com\/en\/#website","url":"https:\/\/blog.urbanitae.com\/en\/","name":"Urbanitae Blog | Las mejores noticias sobre inversi\u00f3n inmobiliaria","description":"Real estate investment for everyone","publisher":{"@id":"https:\/\/blog.urbanitae.com\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/blog.urbanitae.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/blog.urbanitae.com\/en\/#organization","name":"Urbanitae","url":"https:\/\/blog.urbanitae.com\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/blog.urbanitae.com\/en\/#\/schema\/logo\/image\/","url":"https:\/\/blog.urbanitae.com\/wp-content\/uploads\/2020\/04\/logo-verde_350x100.svg","contentUrl":"https:\/\/blog.urbanitae.com\/wp-content\/uploads\/2020\/04\/logo-verde_350x100.svg","width":350,"height":100,"caption":"Urbanitae"},"image":{"@id":"https:\/\/blog.urbanitae.com\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/urbanitae","https:\/\/x.com\/urbanitae","https:\/\/www.instagram.com\/urbanitae","https:\/\/www.linkedin.com\/company\/urbanitae","https:\/\/www.pinterest.es\/UrbanitaeSL\/_created\/","https:\/\/www.youtube.com\/c\/Urbanitae_RE"]},{"@type":"Person","@id":"https:\/\/blog.urbanitae.com\/en\/#\/schema\/person\/4ca5d466abe187a25e51ad000cf7f15d","name":"Luc\u00eda Hern\u00e1ndez","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/secure.gravatar.com\/avatar\/8bbca71d89a508abf534fe138486604d24e33625ec08a6c1cbc9210baabfe69f?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8bbca71d89a508abf534fe138486604d24e33625ec08a6c1cbc9210baabfe69f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8bbca71d89a508abf534fe138486604d24e33625ec08a6c1cbc9210baabfe69f?s=96&d=mm&r=g","caption":"Luc\u00eda Hern\u00e1ndez"},"url":"https:\/\/blog.urbanitae.com\/en\/author\/lucia-h\/"}]}},"modified_by":"Gonzalo Urdiales","_links":{"self":[{"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/posts\/80472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/comments?post=80472"}],"version-history":[{"count":5,"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/posts\/80472\/revisions"}],"predecessor-version":[{"id":83577,"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/posts\/80472\/revisions\/83577"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/media\/83570"}],"wp:attachment":[{"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/media?parent=80472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/categories?post=80472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.urbanitae.com\/en\/wp-json\/wp\/v2\/tags?post=80472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}