Spanish public debt rises to more than 1.6 trillion euros

By:Mohamed Ben Abderrazek 

Data from the Bank of Spain confirms a 1.2% increase in public debt, compared to last January, representing an upsurge of 5.4% over twelve months.

Spain’s public debt surpassed 1.6 trillion euros ($1.7 trillion) in February, according to data recently issued by the Bank of Spain. The Bank confirmed a 1.2% growth in debt in January, an increase of 5.4% over twelve months.

The increase is primarily due to higher spending resulting from the covid-19 pandemic, and price increases, among others, which have led to an increase in spending by the central administration and the Spanish autonomous communities, all of which have risen.

Nevertheless, Social Security debt has not seen any substantial change. Reports also reveal that local authority debt has fallen slightly. The Bank of Spain report did not provide a precise ratio of public debt to the country’s GDP.

However, it disclosed that debt stood at 107.7% of GDP at the end of 2023, slightly lower than the 108.1% projected in September and the 109.7% projected in June.

This decrease is mainly attributed to Spain’s 2.5% economic growth last year. The Spanish government estimates that the public debt-to-GDP ratio will fall to 106.3% this year, to 105.4% in 2025 and to 104.4% in 2026.