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ARCHIVED - National debt in Spain grew to 119.9% of GDP in 2020
Spain had one of the steepest debt increases of major European countries last year
Spain’s national debt in 2020 rose by 24.4 percentage points to stand at 119.9% of GDP according to a new report on ‘The evolution of public debt in Spain in 2020’ by the Bank of Spain. This debt level is much higher than the European average, where general government debt rose 14.1 percentage points to 98% of GDP.
The report comes just a week after the inflation rate in Spain was reported to be at 3.3% in August 2021, also higher than the average inflation rate of 3% in Europe.
This increase in Spain’s debt ratio has been accredited both to the contraction of GDP by 10.8%, and to the rise in the public deficit to 11% of GDP thanks to economic stabilisers and discretionary measures taken to mitigate the financial crisis caused by the Covid pandemic.
In the eurozone as a whole, there has also been an increase in public debt for similar reasons to Spain, but the effect of the economic contraction has been less severe than in Spain.
The overall debt in Spain is higher than other major European countries like France, whose debt grew 18.1 percentage points to 115.7%, and Germany where debt grew by 10.1 percentage points in Germany, to 69.8%. Spain’s rate of growth is also higher than in Italy, where it was 21.2 percentage points in 2020, but the total debt is 35.9% lower.
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