Bank of Spain warns public debt to soar with no consolidation plan


Banca March: The Bank of Spain warns that public debt will soar in the medium and long term in the absence of a consolidation plan. At the end of 2023, the debt ratio was 107.7% of GDP and a structural deficit balance (excluding the cyclical part) of -3.7%. In the absence of fiscal policies, debt would reach 108% in 2026 and 120% in 2024. The institution estimates that, with an adjustment of 0.5% of GDP, debt would show a declining path and reach levels close to 75% of GDP in 2024.

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