THE families from Spain They give an economics lesson to Pedro Sánchez, the president of the government, and fire their economy 17.6% in the second quarter of 2024 compared to the previous three months, to 59,031 million euros, according to information from National Institute of Statistics (INE). At the same time, the Socialist Executive achieved a record of public debt of 1.626 billion euros over the same period, according to data published this Monday by the Bank of Spain.
Thus, in the second quarter of 2024, the Spanish public debt reached a historic record of 1,626 billion euros, with an increase of 11,355 million compared to the previous quarter, which represents an increase of 0.7%.
Despite this increase in absolute terms, the weight of debt in GDP (Gross Domestic Product) decreased by one point, from 106.3% to 105.3%, due to the growth in economic activity.
Year-on-year, public debt increased by 55.946 million euros, an increase of 3.6%, even though its weight on GDP increased from 108.8% in the second quarter of 2023 to 105.3% in 2024. .
Public debt in Spain
By administration, the debt was distributed as follows:
- Central administration: Debt increased by 6.3% over one year, reaching 1,485 billion euros, or 96.2% of GDP, compared to 98.5% the previous year
- Autonomous communities: Its debt increased by 3.1% over one year, standing at 327.940 million euros, or 21.9% of GDP, compared to 22.7% in 2023.
- Local businesses: Its debt decreased by 0.9% over one year, to 23.524 million euros, bringing its ratio to GDP to 1.5%
- Social security: The debt increased by 9.4% over one year to reach 116.171 million euros, with a slight increase in its ratio to GDP from 7.4% to 7.5%
The increase in Social Security debt is mainly due to the loans granted by the State to finance your budgetary imbalancealthough these operations do not affect the total public sector debt, since they are transactions between subsectors.
Lesson of families in Sánchez
Meanwhile, families taught Sánchez a lesson in economics by increasing their savings. Thus, in the second quarter, Spanish households placed their savings rate at 21.2% of their gross disposable incomeagainst the rate of 19.6% over the same period of 2023.
In the second quarter of 2024, Spanish households achieved save more than they spent. The disposable income of households increased by 8.7% year-on-year, reaching 278.195 million euros, while their consumption expenditure amounted to 219.807 million euros, or 6.7% more compared to the same period of the previous year.
This behavior allowed households to save a total of 59.031 million euros, which represents an increase of 17.6% compared to the second quarter of 2023.
When adjusting for seasonal and calendar effects, the household savings rate It stands at 13.1% of its disposable income, one point less than the previous quarter.
Thanks to these savings, households were able to finance your investment over the same period, displaying a financing capacity of 41.212 million euros. This represents an increase of 20.3% compared to the 34.265 million euros recorded in the second quarter of the previous year.
Generally, in the second trimester, the Spanish economy showed a financing capacity compared to the rest of the world of 16.664 million euros, a figure that is equivalent to 4.2% of GDP and exceeds the 11.245 million euros of the previous year.
However, this result is a consequence of financing capacity recorded by households and financial institutionswhich contrasts with the need for financing expressed by non-financial companies and public administrations (AAPP).
In other words, Spanish families and financial institutions saved the economy from red numberscaused above all by the administration led by Pedro Sánchez, who had a deficit of 27.8 billion euros in the second quarter.
Indeed, in seasonally adjusted terms, the Administration’s financing requirement reached 3.2% of GDP, or a tenth more than in the first quarter. In other words, while households tighten their belts, the State remains in deficit.
