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Public debt moves away from June highs and falls 0.7% in July, to 1,558 trillion

MADRID, 19 Sep.

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Public debt moves away from June highs and falls 0.7% in July, to 1,558 trillion


The debt of all public administrations reached 1,558 trillion euros in July, after decreasing by 0.7% in monthly rate, after the historical maximum reached in June, according to data published this Tuesday by the Bank of Spain.

Despite this fall, the figure of 1,558 billion euros is the second highest in the historical series, after the maximum reached in June (1,568 billion euros).

In the last year, public debt has grown by 4.8%, with 71,486 million euros more, as a result of lower income and higher expenses derived from the pandemic crisis and the war in Ukraine and the rise in prices.

In this monthly preview, the Bank of Spain does not offer data on the weight of debt over GDP - measured as a percentage - and the publication of this figure for the second quarter is expected at the end of this month - on September 29 --.

As set by the Executive in the Stability Program in April, the forecast for the debt in 2023 was 111.9% of GDP and the year in which it was estimated that it would fall below 110% (109.1%) was in 2024.

But after the update by the National Institute of Statistics (INE) of the Gross Domestic Product (GDP) data for the years 2020, 2021 and 2022, the acting Government has brought forward the objective of dropping below 110% to 2023. .

Specifically, the National Institute of Statistics (INE) revised upwards the growth of the Spanish economy in 2022 this Monday, from 5.5% to 5.8%, and raised the growth rate from 5.5% to 6.4%. GDP evolution in 2021.

In addition, Statistics reduced the contraction of the economy due to the impact of the pandemic in 2020 and now estimates it at 11.2%, one tenth less than previously estimated.

The monthly decrease in debt in July is mainly due to the fall in debt of the State and that of the autonomous communities and town councils. For its part, the Social Security debt has remained more or less stable in the seventh month of the year.

Specifically, in July the State debt stood at 1,390 billion euros, which represents a decrease of 0.5% and 6,557 million euros less in just one month, while in the last twelve months it has increased by 6.3%.

For their part, in the seventh month of the year the autonomous communities have reduced their debt compared to the month of June, to 325,834 million euros, some 1,414 million euros less (-0.4%), but in the interannual rate it experiences a rebound of 3.7%.

For its part, Social Security debt has remained stable in July, with 106,169 million euros, only five million less than in June, but in the last 12 months it has risen 7%, which remains at maximum levels. .

The Bank of Spain explains that the increase in Social Security debt in the last year is due to the loans granted by the State to the organization's General Treasury to finance its budget imbalance.

Finally, city councils recorded a debt of 23,495 million euros in July, 1.2% less than the previous month, while in the last year it has increased by 1.7%.