Low in the first half of this year, 2.1 percentage points compared to the end of 2021
Government debt as a whole stood at 116.1% of GDP in June, down 2.1 percentage points from December last year. This debt reduction is not due to the adjustment of government spending, but to the effect that inflation has on this macroeconomic size. Compared to gross domestic product in nominal terms, i.e. including real growth and price increases, with an annual inflation rate of 10.2% in June and 6.1% accumulated in the first semester, only because of the nominal increase in GDP, the weight of debt decreases. This is one of the few beneficial effects of the price hike, that while the citizen’s shopping cart is becoming more expensive, the state – and the autonomous communities – are reducing the debt burden.
Public sector debt under the Excessive Deficit Protocol (PDE) reached a balance of 1.47 trillion euros at the end of June 2022, according to data released this Friday by the Bank of Spain, up 3.6% year-on-year. on-year terms. Central government debt reached 1.32 trillion euros, 104.4% of GDP, up 4.1% in the second quarter. Social security debt, in turn, amounted to 99,000 million euros, with a year-on-year growth of 8%.
Autonomous Communities’ debt grew 1.5% year-on-year to 317,000 million euros and represents 24.9% of GDP, while local businesses reached 23,000 million euros, 1.8% of GDP, after an increase of 0.6% compared to a year earlier.
With regard to the evolution of the debt through instruments and conditions, the government’s strategy remains to extend the average maturity of the debt. Debt materialized in long-term securities grew 5.5% year-on-year, while loans of more than one year decreased by 1.2% compared to June 2021. The maturity of short-term instruments for their part decreased by 10.9% in the second quarter.
Taking into account the distribution of the balance, the debt was mainly materialized in June 2022 in long-term debt, representing 94.2% of the total, with the weight of long-term securities at 81.7% being particularly significant, while the percentage of short-term debt amounted to 5.8%.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
