The balance of the Spanish public debt amounted to: 1.56 billion euros A new maximum in June, but its percentage relative to GDP falls to 111.2% after the INE revised growth upwards for 2021 and 2022.
According to data updated by the Bank of Spain this Friday, Spain’s public debt increased by 6.3% on an annual basis in the first half.
Despite this increase, the share of debt in Gross Domestic Product (GDP) decreased by four-tenths according to end-2022 data, as the National Statistics Institute reviewed debt growth last week. 2021 up to 6.4% (0.9 points higher) and 20225.8% (0.3 points higher).
After learning of this update, the Independent Authority for Fiscal Responsibility (AIReF) also corrected its forecasts: it expects Spanish public debt to settle between 108% and 109% of GDP this year; This represents a slight improvement compared to 110.1. Percentage estimated in July.
Government debt increased by 7.1 percent
The balance of government debt rose to 1.42 trillion euros. with an annual increase of 7.1%The number of Social Security administrations reached 106,000 million, an increase of 7% compared to the previous year.
The debt of the autonomous communities increased to 327,000 million. 3.4% more than the previous year, The debt of local companies increased by 0.8%, reaching 24 billion lira.
The most indebted autonomous communities in absolute terms are: Catalonia (86,800 million), Valencian Community (57,246 million), Andalusia (38,018 million) and Madrid (37,658 million), The ones with the least debt are La Rioja (1.760 million) and Navarra (3.175 million).
Those with the highest debt relative to their GDP Valencian Community (43.5%), Catalonia (32.4%), Castilla-La Mancha and Murcia, both with 32.1% The lowest rates were seen in the Basque Country (13%), Navarra (13.3%) and Madrid (13.7%).
Municipal councils of more than one municipality 300,000 population The countries with the largest debts are Madrid (1 billion 886 million), Barcelona (1 billion 155 million) and Zaragoza (616 million).
The government expects the debt to be below 110 percent this year
Ministry of Economic Affairs He assured that “good fiscal management and the strong recovery of the Spanish economy, which will continue into 2023, will allow for a stronger than expected decline in the debt/GDP ratio this year and close to below 110% of GDP.”
In this way, the financial targets set in the Stability Program, European Commission”, The Ministry underlines this by reminding that “a record 5 percent reduction in the public debt rate in one year has already been achieved” in 2022.
They insist on an explanation: “A international context of uncertainty, “Spain maintains investors’ confidence with robust and diversified demand.”