January 24, 2021

Public debt in August rises by 2,352 million and stands at 97.3% of GDP – La Provincia

Public debt in August rises by 2,352 million and stands at 97.3% of GDP - La Provincia


The debt of all public administrationsrose by 2,352 million eurosin the month of August, up to 1,162 billion euros, 0.2% more than in July, sois back to its historical highs and stands at 97.3% of GDP, according to the data published this Wednesday by the Bank of Spain and the calculations made by the Ministry of Economy.

With the increase in August,the public debt returns to recover the bullish paththat has been marking the last years, after the decline of July (-0.3%), and approaches the historical maximum recorded in the month of June (1,163 billion euros).

However, the Ministry of Economy emphasizes thatthe monthly balance has a volatile evolutionconditioned by the concentration of emissions in the first months of the year and the maturities in January, April, July and October.

In inter-annual terms, the debt of public administrations grew by 32,733 million euros, 2.9% more than in August 2017. Compared with December 2017, there was an increase in debt according to the Excessive Deficit Protocol (PDE) ) of 18,058 million euros

After the rebound in August, the ratio of debt to GDPit stood at 97.3%, according to calculations by the Ministry of Economy after performing a linear interpolation between the last known nominal GDP and the one predicted at December 31, 2018 (based on data from the Quarterly National Accounts published by the INE and in the Macroeconomic Table forecasts published in the Budget Plan 2019).

According to the Economy, this figure is fully consistent with the ratio ending at 97% of GDP at the end of 2018, a forecast included in the 2019 Budgetary Plan sent to the European Commission.

State debt rises and that of the Autonomous Communities and municipalities decreases

By administrations, a good part of the increase in public debt in August is due to the rebound of theState debt, which rose by 2,951 million euros, to 1.02 billion euros, which represents a monthly increase of 0.4% and an interannual increase of 4.6%.

On the contrary, lto debt of the autonomous communitiesfell by 671 million in August, 0.2% less than the previous month but rose by 2.4% compared to August 2017, to stand at 291,024 million euros.

On the other hand,the indebtedness of local corporations decreased by 942 million, up to 27,818 million, 3.3% less than in July and also 10% lower than a year ago.

By last,the debt of the Social Security administrationsit dropped by only 25 million, to 34,863 million, which represents an interannual rebound of 50.3%, since in August 2017 it was 23,186 million euros.

By instruments

By instruments, debt securities represented the largest percentage of indebtedness, with 85.8% of the total, in fact they rose by 0.4% compared to July, to stand at 998,064 million euros.

Thelong-term values, which stood at 932,542 million euros in August, rose by 0.5% compared to July, while short-term securities reached 65,522 million euros, 1.6% less.

Loans decreased by 1% inthe eighth month of the year, to 159.785 million. Short-term loans fell to 9,111 million and long-term loans decreased to 150,674 million euros.

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