Spanish government debt marks new record

by Lorraine Williamson
Spanish government debt

MADRID – The government debt of all Spanish public authorities combined reached a new all-time high in September at €1,432,301 million. That is 122.1% of GDP. 

This is evident from data published this Wednesday by the Bank of Spain. The Spanish government debt rose again in September, surpassing the historic peak reached in June last year. At that point, it stood at €1,424,692 and increased to 122.8% of GDP at the end of the second quarter. 

Official government target

The Ministry of Economy assures that, despite this, the national debt will close the year at 119.5% of GDP.  A level that coincides with the government’s official target. 

Casa Las Dunas Spain

The ministry explains that in the last quarter of the year, the pace of government debt issuance will be reduced and that there will also be two major repayments, one in October for an amount of €20,329 million, and another in November for €6,254 million. 

Covid-19 crisis

Compared to September last year, public debt has increased by €124,097 million, or 9.5%, as a result of the Covid-19 crisis, which reduced revenues and increased spending to finance approved support measures. 

The increase in debt in September is due to the increase in central government indebtedness, while the rest – autonomous communities, municipalities, local companies, and social security – have reduced their debt or kept it at a level comparable to the level recorded last month. 

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