Sunday, September 26

The Bank of Spain confirms a new public debt record at 114.1% of GDP

Evolution of public debt quarter by quarter over GDP in Spain.

Evolution of public debt quarter by quarter over GDP in Spain.

The Bank of Spain confirmed this Friday that public debt closed the third quarter at almost 1.31 trillion euros, equivalent to 114.1% of GDP, a level never before reached and that is framed in a context of crisis, in which the pandemic has forced financing of greater public spending.

The rate stands at 4.7 points of the latest government forecast, set at 118.8% of GDP for the whole of 2020.

The total amount of indebtedness of the public administrations as a whole amounted to 1,308,085 million euros until September, slightly below the data advanced by the Bank of Spain on November 17.

Most of the debt, 1,177,721 million (102.7% of GDP), corresponds to the central administration; 301,722 million (26.3% of GDP), to the autonomous communities; 23,744 million (2.1% of GDP), to local corporations; and 74,855 million (6.5% of GDP), to the Social Security administrations.

The sum exceeds the total because most of the regional debt is also accounted for by the State, its main creditor.

The debt balance of set of public administrations increased by 8.7% year-on-year, with an increase of 10% for the central administration (concentrated in long-term securities issues of the State) and only 1.2% for the autonomous communities, while local corporations decreased their indebtedness 5.9%.

The debt of the administrations of the Partner Securityl grew 42.7% year-on-year. Most of the autonomous regions continued to increase their indebtedness compared to a year earlier, except for the Canary Islands, Catalonia, Extremadura, Galicia, La Rioja and the Basque Country, which registered small reductions.

In absolute terms, Catalonia is the one with the highest amount of debt (78,292 million), followed by the Valencian Community (49,651 million), Andalusia (35,236 million) and the Community of Madrid (34,801 million).

However, the Valencian Community it is at the top in terms of GDP, with a debt equivalent to 46.7% of its GDP.

Behind are Castilla-La Mancha (39.7% of its GDP), Catalonia (35.9% of its GDP), Murcia (35.2% of its GDP) and the Balearic Islands (30.1% of its GDP).

From local corporation debt, almost a fifth part corresponds to the thirteen municipalities with more than 300,000 inhabitants, with a total of 5,092 million, down from 6,105 million a year earlier.

All have reduced their indebtedness except Bilbao, where it has grown from 4 to 12 million, and Valladolid, where it has gone from 91 to 93 million.

But nevertheless, the most indebted is still Madrid, with 1,969 million, although far from the maximum of 7,733 million registered in 2012.

They are followed at a distance by Barcelona (783 million) and Zaragoza (718 million), although both cities have been reducing their debt from the highs marked in 2010 in the case of the Catalan capital and in 2015 in that of the Aragonese capital.

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