Spain’s public debt (€1.4 trillion) growing at 7.8%

3. Public debt

According to data from the Bank of Spain (BdE), the debt of the State as a whole amounted in January to €1,422,968 million, a year-on-year increase of 7.9%. The regional governments increased their debt by 2.7% to €324,146 million. In turn, local corporations increased their indebtedness by 1.6% year-on-year in January to €23,212 million, while Social Security debt rose by 9.4% to €116,172 million. Finally, the debt of other central government units fell 8.7% year-on-year in January to €39.997 billion.

Link Securities analysts’ assessment: the continued increase in Spain’s public debt will be a drag on the economy’s future growth. To avoid this, Spain should start reducing its deficit at a faster pace than projected.

About the Author

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.