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.
