The debt of all public administrations continues to reduce its weight with respect to GDP by moderating in the second quarter of the year to 111.2%, according to data published this Friday by the Bank of Spain, which lowers the levels by almost two points of indebtedness with respect to the initial calculation. The percentage is significantly lower than the maximums reached during the pandemic, when it rose to 120.4%.
The central bank estimated in August that public debt had fallen to 113.1% of GDP in the first half. But the latest review of the National Accounting of the National Statistics Institute (INE), which corrected upward the economic growth of 2021 and 2022, has now forced the institution to adjust its accounts.
The acting Government hopes that the increase in GDP will allow it to anticipate the fiscal objectives set in the stability program, bringing forward to 2023 the reduction of public debt below the 110% expected for next year. A threshold, which, however, is still above the latest estimates made by some organizations such as the Independent Authority for Fiscal Responsibility (AIReF), which predicts that the debt will close this year between 108% and 109% of GDP.
Compared to the second quarter of 2022, debt in relation to GDP has fallen from 114.5% to 111.2%, due to the improvement in economic activity. Despite this, the debt of public administrations increased in absolute terms to the historical maximum of 1,569 billion, 92,551 million more than a year ago, which represents a rise of 6.3%.
Compared to the first quarter of the year, the debt rose by 33,358 million between April and June, which represents a rise of 2.2%. However, the weight in GDP remained at 111.2% in both quarters.
The balance of the State debt rose to 1.42 trillion euros, with a year-on-year increase of 7.1%, while that of the Social Security administrations stood at 106,000 million, also 7% more than a Year before, that of the autonomous communities grew to 327,000 million, 3.4% more year-on-year, and the debt of local corporations stood at 24,000 million, 0.8% more.
