Spain’s Public Debt Exceeds 1.6 Trillion Euros Due to COVID-19 Spending Surge

(CTN News) – Data published Monday by the Bank of Spain indicate that Spain’s public debt exceeded 1.6 trillion euros (1.7 trillion dollars) in February.

According to the Bank, the debt increased by 1.2 percent in January, representing a 5.4 percent increase over the past twelve months.

A major reason for the increase is the increased expenses resulting from the COVID-19 pandemic and price increases, among other factors, which resulted in an increase in government spending.

Although Spain‘s central government and autonomous communities have increased their spending, Social Security’s debt has not changed significantly. Local authorities’ debt has also decreased slightly.

The Bank of Spain report does not provide information on public debt to GDP. However, it was determined that debt would account for 107.7 percent of GDP by the end of 2023, slightly lower than the 108.1 percent projected in September and the 109.7 percent projected in June.

Spain’s 2.5 percent economic growth last year is primarily responsible for this reduction.

The Spanish government is projected to owe approximately 106.3 percent of the public debt this year, 105.4 percent by 2025, and 104.4 percent by 2026. (One euro equals 1.06 dollars.)

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