Tuesday, August 9

Public debt sets a new record in June with 1.42 trillion euros and exceeds 122% of GDP

The debt of the public administrations as a whole reached 1.42 trillion euros in June, a new historical maximum, after growing almost 1.7% in the monthly rate, which has led to two consecutive months of growth, according to the data published this Tuesday by the Bank of Spain.

Using the nominal GDP of the last four quarters, the debt-to-GDP ratio stood at 122.1% in the second quarter of 2021, above the target established in the Stability Plan of 119.5% of GDP.

Compared to June last year, public debt has increased by 134,607 million euros, which represents a 10.4% rebound, as a result of the Covid-19 crisis, which has cut income and raised expenditure to finance approved support measures.

The balance of the State debt rose to 1.23 trillion euros, with a year-on-year increase of 7%, while for the Other Units of the Central Administration the balance was 57,000 million, which represents an increase of 132, 6% compared to the data of the previous year. This strong increase was mainly produced by the debt that the State of the Sareb (bad bank) has had to assume. For its part, the debt balance of the Social Security Administrations stood at 92,000 million, 33.4% more than a year earlier.

Regarding territorial administrations, the debt of the Autonomous Communities grew to 313,000 million euros in June 2021, with a year-on-year increase of 2.4%, while the debt of the Local Corporations stood at 23,000 million euros in this month, which is 9.1% less than the balance registered in June 2020. On the other hand, the consolidation in the set of Public Administrations -that is, the existing debt between different sectors- increased by 2.4 % compared to the previous year, up to 294,000 million euros.



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