Spain's Public Debt Falls to 101.8% of GDP in 2024
Banco de España reports a decrease in public debt ratio despite a year-on-year increase in total debt.
The Banco de España confirmed that Spain's public debt closed 2024 at €1.621 trillion, marking a 2.9% increase from the previous year.
However, the debt ratio relative to the country's GDP fell to 101.8%, a reduction of 3.3 percentage points compared to the 2023 figure.
The Spanish government's medium-term fiscal plan submitted to Brussels had estimated the debt-to-GDP ratio to decrease to 102.5% in 2024. The final assessment indicates that Spain surpassed its projected target, achieving a ratio of 101.8%.
Looking ahead, the government anticipates a continued decline in the debt ratio, forecasting figures of 98.4% by 2027, 90.6% by 2031, and 76.8% by 2041. However, the timeline for achieving levels considered "prudent" by Brussels, specifically below 60%, remains unspecified in the government’s projections.
Despite the relative decline in the debt-to-GDP ratio, Spain's public debt increased by €45.224 billion over the past year, maintaining a level above €1.6 trillion, close to the record high of €1.636 trillion recorded at the end of the third quarter of 2024.
In comparison to the third quarter of 2024, total public debt decreased by €15.130 billion in absolute terms and as a percentage of GDP, falling from 104.4% to 101.8%.
Examining the debt evolution across various subsectors of public administrations, the total debt for the Central Administration reached €1.489 trillion in December 2024, up 3.7% year-on-year, representing 93.6% of GDP down from 95.8% in 2023.
The debt of the Social Security administrations amounted to €126.173 billion, or 7.9% of GDP, slightly above the 7.8% recorded in 2023, reflecting a year-on-year growth of 8.6%.
This increase has been attributed to loans provided by the state to the General Treasury of Social Security to alleviate a significant portion of its budgetary imbalance.
These loans, as financial operations between subsectors, do not impact the total debt of the public sector.
The debt of Local Corporations was reported at €22.848 billion, which represents 1.4% of GDP, a decrease from 1.6% in 2023, and reflects a 2% decline from the previous year’s balance.
In regard to the regional administrations, the debt of the Autonomous Communities surged to €335.977 billion by December 2024, accounting for 21.1% of GDP, lower than 21.7% in 2023, showing a year-on-year increase of 3.3%.
However, the debt ratio relative to the country's GDP fell to 101.8%, a reduction of 3.3 percentage points compared to the 2023 figure.
The Spanish government's medium-term fiscal plan submitted to Brussels had estimated the debt-to-GDP ratio to decrease to 102.5% in 2024. The final assessment indicates that Spain surpassed its projected target, achieving a ratio of 101.8%.
Looking ahead, the government anticipates a continued decline in the debt ratio, forecasting figures of 98.4% by 2027, 90.6% by 2031, and 76.8% by 2041. However, the timeline for achieving levels considered "prudent" by Brussels, specifically below 60%, remains unspecified in the government’s projections.
Despite the relative decline in the debt-to-GDP ratio, Spain's public debt increased by €45.224 billion over the past year, maintaining a level above €1.6 trillion, close to the record high of €1.636 trillion recorded at the end of the third quarter of 2024.
In comparison to the third quarter of 2024, total public debt decreased by €15.130 billion in absolute terms and as a percentage of GDP, falling from 104.4% to 101.8%.
Examining the debt evolution across various subsectors of public administrations, the total debt for the Central Administration reached €1.489 trillion in December 2024, up 3.7% year-on-year, representing 93.6% of GDP down from 95.8% in 2023.
The debt of the Social Security administrations amounted to €126.173 billion, or 7.9% of GDP, slightly above the 7.8% recorded in 2023, reflecting a year-on-year growth of 8.6%.
This increase has been attributed to loans provided by the state to the General Treasury of Social Security to alleviate a significant portion of its budgetary imbalance.
These loans, as financial operations between subsectors, do not impact the total debt of the public sector.
The debt of Local Corporations was reported at €22.848 billion, which represents 1.4% of GDP, a decrease from 1.6% in 2023, and reflects a 2% decline from the previous year’s balance.
In regard to the regional administrations, the debt of the Autonomous Communities surged to €335.977 billion by December 2024, accounting for 21.1% of GDP, lower than 21.7% in 2023, showing a year-on-year increase of 3.3%.
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