Thursday, November 30, 2023

Spain’s public debt marked a new record of 1,578 billion euros

The debt of all public administrations burst in September to a historical maximum of 1,578 billion euros, which represents an increase in terms of almost 1% compared to last month, although the GDP ratio moderated to 109.9%, according to data published this Friday by the Bank of Spain.

year-on-year rate increased by 4.9% compared to the same month last year, with 73,019 million more, as a result of lower income and higher costs obtained from the impact, in recent years, of the pandemic, the war in Ukraine, and the rise in prices.

Using the PIB nominal In the last four quarters, the debt/GDP ratio stood at 109.9% in the third quarter of 2023, representing an average weight of debt of more than one point compared to the figure for the second quarter, when it reached 111.2%.

The budget plan for 2024 sent to Brussels in October suggests that good economic growth, which is expected to grow by 2.3% in 2023 according to the forecasts of the Executive, will reduce the ratio of debt to GDP to reach 108.1% by 2023, which will increase by one year to the goal of keeping it below 110%. Next year, it will continue to decrease by 106.3%, which will represent a decrease of 14 points compared to its value in 2020.

The state debt set a new record in history

Through administrations, the state debt It rose in September to 1,412,207 million euros, 6.3% more than a year ago and 1.1% higher than the previous month, thus marking its high period.

For its part, the debt of the autonomous communities fell by 1.7% to 320,315 million euros compared to the previous month, although it increased by 1.7% compared to the same period last year.

In the case of local corporations, debt increased slightly in September compared to August, with 74 million more, up to 23,331 million, while it increased by 2.3% compared to the same month in 2022.

Finally, the government debt of Social Security stood at 106,172 million euros in September, the same figure as last month, although the interannual growth was 7%, due to the state providing loans to the General Treasury of Social Security to finance its budget imbalance.

World Nation News Desk
World Nation News Desk
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