National debt breaks a new record in March at 1.454 billion

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National debt breaks a new record in March at 1.454 billion

However, nominal GDP growth makes it possible to reduce the ratio to 117.7% in the first quarter. Social Security debt is skyrocketing by 16% and now exceeds $99,000 million

Spain has never owed so much. The national economy bid farewell to the first quarter of the year with debt at 117.7% of GDP, according to data confirmed by the Bank of Spain on Tuesday. While the data points to a 0.7 percentage point decline from the end of 2021, this improvement in the ratio is based on nominal GDP growth rather than the necessary adjustment to the overall balance, which increased year-on-year by 4.4% to 1.454 billion euros.

The figure is historical. And it highlights the difficulties a country so highly indebted could face at a time in the cycle like the current one, with central banks expected to raise interest rates faster than expected, driving down the borrowing cost of all that ball of accrued money. debts rise.

With this data on the table, it is clear that the government will have to work hard to meet the target set in the stability program sent to Brussels in April, which expects the debt-to-GDP ratio to fall this year to 115.2% of the GDP.

Towards the end of the year, debt has increased by EUR 26,618 million, an increase of almost 2%, in a context marked by the crisis in Ukraine and the rise in prices. In total, government debt has increased by EUR 60,780 million over the past year, representing a 4.3% rebound, although its weight in GDP has fallen from 125.2% in the first quarter of 2021.

The central government continues to weigh most in this increase in debt, which totaled EUR 1,307 billion in March, 105.8% of GDP. The annual growth rate of this subsector’s debt was 4.7% in the first quarter of 2022.

Similarly, the debt balance of the social security administrations amounted to 99,000 million euros, with an annual growth rate of 16.2%.

As for the territorial authorities, the debt of the Autonomous Communities (CCAA) grew to 310,000 euros in March 2022, 25.1% of GDP, with an annual increase of 0.7%, while the debt of the local companies 22,000 million amounted to , 1.8% of GDP. However, it represents 1.5% more than the balance a year earlier.

Source: La Verdad

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