BancaMarch: Spain’s public debt continues to grow. Public debt closed June at €1.569 trillion, reaching record highs, above the levels seen during the pandemic, according to data published by the Bank of Spain. The increase in debt is a consequence of lower revenues and higher expenses derived from the war in Ukraine and the pandemic.
The difference with respect to the previous month amounts to €26.93 billion. If we compare these values with June of the previous year, the difference amounts to €93.763 billion, which represents a year-on-year growth rate of 6.36%. All strata have increased their year-on-year balances (central government, autonomous communities and local corporations). In relative terms, debt is 113.1% of GDP, a value that seems to be stabilising, although it is still significantly above pre-pandemic levels. What is worrying about these figures is that the economic growth observed so far this year has not been used to reduce this ratio. The target set by the Stability Plan 2023-2026 of 111.9% for this year is beyond our reach.
