The Bank of Spain (BdE) raised its growth forecast for this year by five tenths to 2.8% yesterday, while calling for transparent and prompt fiscal consolidation. It also announced that the total public debt of Spain’s administrations decreased by €8.931 billion in July compared to June (-0.5%), reaching €1.616 trillion, the second-highest figure in historical series. This is slightly less than 108% of GDP.
The decrease in public debt in July compared to June is attributed to the reduction in debt from the State and the autonomous communities, while municipalities recorded a slight increase and the Social Security debt remained unchanged.
Over the last 12 months, Spain’s public debt has increased by €58.524 billion (+3.8%). In July, the State’s debt stood at €1.463 trillion (+5.3% year-on-year), which represents a decrease of 0.25% from the previous month.
Meanwhile, the debt of the autonomous communities reached 334.694 billion (+2.7% year-on-year), which is 0.94% lower than in June. Additionally, the debt of local corporations (municipalities) rose in July to €23.880 billion (+1.5% year-on-year), reflecting an increase of 1.3% compared to June. Finally, the Social Security debt was at €116.171 billion in July (+9.4% year-on-year), remaining stable compared to the previous month.
