Spain: Corporate And Household Debt Increased By 1.8% In The Last Year To 144.2% Of GDP

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The financial wealth of Spanish households increased by 5.1% in the last year to stand at 214.1% of GDP. The Financial Accounts of the Spanish Economy, published by the Bank of Spain, show that consolidated corporate and household debt reached €1.673 billion in the second quarter of 2021 (144.2 % of GDP), 1.8 % above the €1.644 billion recorded a year earlier (140.5 % of GDP). The increase in the debt-to-GDP ratio compared with the same quarter a year earlier was due to the rise in debt (numerator of the ratio) and, to a lesser extent, the decline in GDP (denominator of the ratio). Both corporations and households contributed to the increase in aggregate debt, as the consolidated debt of non-financial corporations increased from $933 billion to $961 billion, reaching 82.8% of GDP (if inter-company debt were included, the ratio would be 106.4%). Households’ debt increased from $711 billion to $712 billion (bringing the ratio to 61.4% of GDP).

To put this data in context, it is worth recalling that at the end of the first quarter of this year, loans to the private sector in developed economies exceeded 300% of their GDP.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.