Public debt reduced its weight by four points compared to GDP in 2023. The liabilities of Public Administrations represent 107.7% of the economy, according to the Government’s calculation based on data published this Friday by the Bank of Spain . In total, the debt amounts to 1,574 trillion euros: compared to last year it grows by 5%, about 72,000 million.
Back to the comparison with GDP, the figure improves the 2022 rate by four points and remains below the reference of 108.1% set in the budget plan. “The strength and positive evolution of the Spanish economy, with a growth of 2.5% in 2023, as well as the improvement in public income, are the fundamental causes of the reduction in the ratio,” states the Ministry of Economy. directed by Carlos Corpus. The minister added the Government’s “commitment to responsible finances” as key.
“Once again the debt has been reduced. Beating expectations, even our forecasts,” he highlighted. It is the third year in a row in which the references have been beaten, already 17 points below the peak of the pandemic. “In 2024 we expect the downward path to continue and end up at 106% of GDP,” he predicted.
Most of the debt corresponds to the State, with 1.41 trillion, about 80,000 million more than last year. It is an increase of 6.2%. Among the autonomies the rebound is about 8,400 million, up to 325,474 million (2.6%).
The Social Security debt follows by size, with 116,173 million euros after an increase of 10,000 million in the year (9.4%). “This increase is due to the loans granted by the State to the General Treasury of Social Security to finance its budget imbalance,” notes the Bank of Spain.
The liabilities of local corporations vary slightly, with 250 million more and reaching 23,299 million in debt (1.1%).
Most of the debt is long-term, with 1,326 billion euros. Spain also owes 171,677 million in loans that are also mainly long-term, with 166,617 million.
