Public administrations closed the third quarter of the year with higher debt as a whole. The Spanish public debt rose in the third quarter to the historical maximum of 1,577,266 million euros, which represents an increase in relative terms of 0.5% compared to the previous period. However, the GDP ratio moderated more than one point, from 111.2% to 109.9%, according to data published this Friday by the Bank of Spain.
If this ratio is compared to that of a year ago, the reduction is even more significant, 4.1 percentage points. Decrease explained by economic growth, which was 1.8% compared to the previous year. Even so, the Spanish debt is 4.8% higher than that registered in the same quarter of 2022. Specifically, it totaled 72,553 million, as a result of lower income and higher expenses derived from the impact of the pandemic, the war in Ukraine and the escalation of prices.
All public administrations increased their debt. In the case of the central administration, it grew to 1,435 billion, 5.5% more than a year ago. While the balance of the Social Security debt stood at 106,000 million, 7% more, and that accumulated by the autonomous communities was 320,000 million, 1.6% more.
In the case of local corporations, their debt reached 23,255 million in the third quarter of 2023, which represents an increase of 1.9% compared to the balance registered in the same quarter of 2022.
The Government's forecast is that public debt will continue to reduce with respect to GDP, up to 108.1% this year, thus bringing forward by one year the objective of placing it below 110%, if the forecast for GDP to grow by 2.3% this year.
