Public debt closes 2022 with 1,502 trillion and moderates its weight over GDP to 113.2%

March 31 () –

The debt of the public administrations as a whole closed the 2022 financial year at 1,502 trillion euros, which represents an increase of 75,305 million with respect to the previous year, although it reduced its weight on GDP to 113.2%, being below the target of the Government, according to the data published this Friday by the Bank of Spain.

In year-on-year terms (December 2022 compared to the same month in 2021), public debt increased by 5.3%, with more than 75,303 million additional euros, due to higher expenses and lower income derived from the coronavirus crisis and the response to the economic impact of the crisis in Ukraine and the rise in prices.

Despite this rise, Spain managed to reduce the debt to GDP ratio by more than five points in just one year, from 118.3% in 2021 to 113.2% in 2022, given the favorable evolution of the economy, which grew 5.5% in 2022.

In quarter-on-quarter comparison, the debt registered a slight decrease in the final stretch of the year and fell from the record of 1,503 trillion reached in the third quarter of 2022 to 1,502 trillion with which the year closed. The debt ratio also fell from 115.6% in the third quarter to 113.2% at the end of the year.

The organization headed by Pablo Hernández de Cos has thus confirmed that the percentage of debt over GDP with which it closed last year is lower than the Government’s objective for the whole year (115.2%), in accordance with what is established by the Executive in the Budget Plan and approaching the fulfillment of the objective by the end of 2023.

Thus, from the maximum level reached during the pandemic, the debt to GDP ratio has fallen by more than 7 points. The Executive has ensured that it maintains its commitment to fiscal rigor, while the economy grows and quality employment is created.

The scenario proposed by the 2022-2025 Stability Program shows a progressive decline in the deficit over the four years until the debt/GDP ratio stands at 109.7% in 2025.

(((WILL BE EXTENSION)))