Public debt falls 0.5% in October, to 1,628 trillion, and moves away from the maximum level

MADRID Dec. 18 () –

The debt of all public administrations has registered a decrease in October of 7,873 million euros compared to September, which represents a drop of 0.5% in one month, reaching the figure of 1,628 billion euros, according to the data published this Wednesday by the Bank of Spain.

With this decrease, the debt is moving away from the maximum reached last September (1,636 billion euros), although it is the second highest figure in the series in absolute terms.

The fall in public debt in October compared to September is mainly due to the decrease in State debt, while both the autonomous communities and city councils register a slight increase and the Social Security debt remains almost unchanged.

In the last year, the public debt has grown by 3.5%, with 54,954 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 quarterly percentage -, but the latest data offered by the organization indicate that the debt stood at the end of the third quarter at 104.4% of GDP.

The Executive’s estimates point to a downward path in public debt in the coming years. In the medium-term structural fiscal plan, sent last month to Brussels, the Government foresees that the debt-to-GDP ratio will fall from 102.5% in 2024 to 98.4% in 2027, to 90.6% in 2031 and 76.8% in 2041.

Although a downward path is seen over the next few years, it is not specified in the Executive’s projections when Spain will be able to reduce its debt below the “prudent” levels of 60% proposed by Brussels.

(((THERE WILL BE AN EXPANSION)))