Public debt exceeds 1.5 trillion in September and stagnates at 116% of GDP
The European Central Bank (ECB) has warned this in the last few hours, and other international organizations. The high public debt is a major problem for the main economies in a context of uncertainty like the current one -due to the war and the energy crisis- and in which financial conditions are tightening at the same time. In Spain, the debt of all public administrations climbed in September to the all-time high of 1.504 billion euros. It increases by 0.8% in relation to the previous month and is equivalent to 116% of GDP (its weight in relation to the economy is reduced just one tenth compared to August and is 5.9 points lower than that registered in the third quarter of 2021, when it reached 121.9% of GDP).
According to the data published this Thursday by the Bank of Spain (BdE), the liabilities of the Public Administrations as a whole increased by 5% in relation to the same month of the previous year, with a total of 71,715 million more. This increase is due, above all, to the higher expenses derived from the crisis generated by the Covid pandemic and those caused by the Russian invasion of Ukraine and by the escalation of energy prices and inflation in general.
Although the public debt ratio has been gradually reducing in recent months, in the absence of data for the last quarter of the year it remains above the 115.2% forecast by the Government in the Stability Plan sent to Brussels on last April. The objective is to place this variable at 109.7% of wealth in the year 2025. At the moment Brussels maintains suspended the fiscal rules that force countries to stick to debt and deficit targets, although the European Commission is in the process of reviewing these mechanisms and is considering applying less substantial but stricter sanctions.
The the greatest increase is registered by the debt of the Central Administration, which is the one that has been assuming the economic blow of the last crises. That of the State increased 6.8% year-on-year to 1.3 trillion, while that of the Administrations that make up Social Security stood at 99,192 million, after rising 8% in relation to the previous year.
As far as territorial administrations are concerned, The debt of the autonomies increased by 0.9% to 315,015 million, while that of Local Corporations reached 22,369 million after rising a slight 0.1%. Consolidation in the Public Administrations as a whole (the debt held by different administrations) increased by 4.6% year-on-year to 307,961 million euros.
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