Spain’s public debt has hit a new all-time high, reaching a staggering 1.64 trillion euros in the third quarter of this year, according to data released by the Bank of Spain.
While this marks an increase of 10.05 billion euros from the previous quarter, or a 0.6% rise, the debt-to-GDP ratio has slightly improved. It now stands at 104.4%, down from 105.3% in the second quarter and 107.4% in the same period last year.
Despite the record-breaking debt figure, the country’s economic growth has helped reduce the debt’s weight on the GDP. Over the past year, public debt has risen by 57.3 billion euros, a 3.6% jump, but the stronger economic performance has contributed to the drop in the debt-to-GDP ratio.
Looking ahead, the Spanish government remains optimistic, projecting a steady decline in public debt over the next few years. According to their medium-term fiscal plan submitted to Brussels, the government expects the debt ratio to decrease to 102.5% in 2024, and then continue falling to 76.8% by 2041.
