Valencian Community is consolidated as Autonomy with larger debt volume relative to GDP and second, if the per capita debt criterion is used, it is only behind Catalonia. This situation was also reflected in the report Indebtedness of Autonomous Communities published this monday BBVA Research, It covers the development of this indicator in recent years.
As a whole, the study service last year largest autonomy debt volume in historyin total 316.8 billionequivalent to 23.9% of national GDP. However, the situation is very different from region to region. Thus, in this case Valencian Community The Generalitat’s debt is already equivalent to: 44.5% of GDPwhich puts him at the top of all regions and follows Castile la Manchawith a responsibility that represents 33.7% from his wealth; And Cataloniawith 33.5%.
At the other end, Canary Islands It stands out as the least indebted autonomy, with a volume equivalent to 13.1% of GDP; next Basque Country (13.9%) and Navarrewith 14.3%.
If split debt is analyzed among the number of livingThe situation changes slightly and in this case Catalonia presents the worst datawith 10,981 euros per resident; while Valencian Community takes second place, 10,810 euros. This figure has increased significantly over the last eight years, as the Community’s per capita debt in 2015 was 8,517 euros, i.e. 2,293 euros by the end of 2022.
Although the BBVA Research study did not delve into this topic, the Valencian Community Spain’s worst-financed autonomyThis means it is the council that receives the least money per head to fund public services, which has forced different Councils that have succeeded each other in recent years to use loans to cover costs.
Evolution
The report generally underlines the following: Regional debt remained at moderate levels until 2007Average annual growth rates are 7.3%. That year, the debt of the autonomies was 61 billion 960 million euros, or 5.8% of GDP.
But heThe financial crisis that broke out in 2008 increased the numbers rapidlyand between that year and 2015 regional debt grew at an annual rate of 20%, reaching 25% of GDP. Over the next five years debt stabilized at around 24% of GDP, but It rose again with the arrival of CovidUntil, at the end of 2022, regional debt reached historic highs, exceeding 316.8 billion euros, 23.9% of GDP.
Source: Informacion
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