Spain's public administrations' debt reached a new nominal high of €1.763 trillion in June, the Bank of Spain reported. Debt increased 4.2 per cent compared with the same month the previous year.
Debt as a percentage of gross domestic product rose to 101.5 per cent in June, from 100.2 per cent in May. However, on an annual basis, the ratio declined by 1.9 percentage points, according to Bank of Spain data.
The contrast reflects the situation of Spain's public finances: the country accumulates more debt in absolute terms, but robust economic growth reduces its relative weight on the economy. During the first six months of the year, debt increased both in nominal terms and as a percentage of GDP, rising from 100.7 per cent in December to 101.5 per cent in June.
The increase in debt in the first half occurred while Spain accelerated its economic growth in the second quarter. GDP advanced 0.7 per cent between April and June, a tenth of a percentage point more than in the first quarter, and maintains an annual advance of 2.7 per cent, according to data from the National Institute of Statistics.
The increase in debt was concentrated mainly in the State, whose debt reached €1.602 trillion in June, some €67.5 billion more than a year earlier, equivalent to 92.2 per cent of GDP. Social Security debt reached €136 billion, about €10 billion more than a year ago, representing 7.8 per cent of GDP.
The regional authorities increased their debt to €355 billion, some €12.3 billion more than in June the previous year, reaching 20.4 per cent of GDP. Local authorities reduced their debt by 8.1 per cent compared with the same period, to €21 billion, equivalent to 1.2 per cent of GDP.
Debt increased across all types of financing instruments used by public administrations. Securities and loans with maturities of more than one year grew 3.6 and 6.1 per cent respectively in year-on-year terms, while short-term debt recorded an increase of 10.9 per cent compared with June the previous year.
