The president of the Canary Islands, Fernando Clavijo, has issued a stark warning about the region’s economic outlook in light of the escalating conflict between Iran and Israel. He explained that the rising price of oil — one of the immediate consequences of the war — will directly affect the islands, where the cost of living is already under pressure due to the heavy reliance on imported goods.
“Everything comes by transport,” Clavijo reminded Parliament, emphasising how energy costs quickly ripple through to the prices of food, housing, and basic services.
Impact on Inflation and Living Costs
Speaking in response to a question from the Agrupación Socialista Gomera (ASG) about support for vulnerable households, Clavijo said plainly: “There is no good news.” He warned that inflation in the Canary Islands is likely to rise further, driven by external geopolitical tensions.
Although macroeconomic figures show growth — with the regional economy outperforming the Spanish average and employment rates showing positive trends — this growth is not translating into improved living conditions for many Canarian families.
“The wealth being generated is not being fairly distributed,” Clavijo stated.
Structural Challenges: Housing, Job Insecurity, and Poverty
The president pointed to three persistent issues that continue to fuel chronic poverty, which affects 10.8% of the Canary Islands population:
- A severe housing emergency, driven by limited availability and rising costs.
- Job insecurity, especially in the tourism and service sectors.
- Persistent inflation, which erodes purchasing power, particularly among lower-income households.
Despite positive economic indicators, these structural problems leave many residents unable to escape poverty. Clavijo stressed the importance of fiscal policy to combat inflation and pledged to intensify efforts to raise wages, improve housing access, and promote social dialogue.
Stark Realities from the ASG
Casimiro Curbelo, representing the ASG, echoed Clavijo’s concerns and provided further insight into the social reality of the archipelago:
- 65% of workers are in vulnerable employment situations.
- 12% of the population struggles to cover basic living expenses.
- Many wages are insufficient to meet the rising cost of living, particularly in relation to housing.
“The cost of housing is disconnected from reality,” Curbelo lamented, criticising the imbalance between earnings and essential costs.
While the Canary Islands continue to register economic growth on paper, the combined impact of international instability, energy price shocks, and local inequalities places significant pressure on residents — especially the most vulnerable. The regional government now faces the challenge of translating that growth into real improvements in quality of life, amidst a backdrop of global uncertainty.
