Spanish companies and households: less debt and more financing

spanish family

J.L.M. Campuzano (AEB) | The Bank of Spain has published the financial accounts for the Spanish economy at the end of the first quarter. Consolidated household and company debt fell in the first quarter to 132% of GDP, 4.1 percentage points below the rate the year before. Company debt represents 74.4% and that of households 58.4%. The consolidated net financing flow received by both sectors is 0.8% of GDP, 0.6% for companies.

The net financial operations for resident sectors up to March, in cumulative figures over four quarters, registered a surplus of 1.2% of GDP. The positive balance of the private sector of 3.6% contrasts with the 2.4% deficit for public administrations.

Financial entities have a surplus of 2.6% of GDP, above the 0.6% for companies. Households also have a positive balance of 0.1%.

The bulk of household financial assets are in cash and deposits (40% of the total), followed by stocks and shares (27%), insurance and pension funds (16%) and investment funds (14%). Cash and deposits are the component which has most increased its weight in household financial assets.

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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.