• The ratio is estimated at 99% of GDP, three tenths lower than the end of the previous year and below the target
  • Debt growth rate slows and grows less than half than a year ago

The percentage of Public Administration debt over GDP fell at the end of 2015 for the first time since the start of the crisis in 2008, according to data published today by the Bank of Spain. This percentage is estimated at around 99% of GDP, based on the advance in National Accounting published by the National Statistics Institute (INE) on January 29. If this result is confirmed with the final figures, it would mean a decrease of three tenths compared to the end of the previous year. In relation to the objective communicated to Brussels in October last year (99.7%), the 2015 result would have been below.

The total volume of debt of the AA PP stands at 1,069,876 million euros, 3.5% more than at the end of 2014 although with a downward profile in the growth rate. Compared to 7% growth at the end of 2014, the evolution in the growth rate throughout 2015 has been declining. Considering the breakdown according to Public Administrations, the State increased its debt in circulation during 2015 by 46,721 million euros, half that of a year earlier, while the Autonomous Communities increased their debt by 23,806 million euros, slightly above 2014. Finally , the Local Corporations reduced their debt levels in 2015 by 3,080 million euros to put their outstanding balance at 35,250 million euros.

The percentages on GDP show that the increase in the public debt ratio changes its trajectory for the first time since 2008, the year in which the recession that lasted until mid-2013 began. The increase thereafter responds to the evolution of the public deficit , the funds dedicated to the financing of the autonomous communities (FLA and the Supplier Payment Fund), the restructuring of the financial sector and the Spanish contribution to the European assistance programs for partner countries. This trend changes in 2015, thanks mainly to the reduction of the public deficit and the improvement in the conditions of debt financing.

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