In Spain, debt is growing faster than the GDP. The federal government is carrying 700 billion eurus of debt as of the end of Q2. That is 2.9% quarter-to-quarter and 16.5% year-to-year.
The federal government debt equaled 65.2% of annual GDP as if the end of Q1. We have to look back to 1997 to find a higher rate than this. Also, for the third straight time it exceeds the rate that the Program for Stability and Growth permitted.
Central administration's debt reached 49.4% of Spain's annual GDP, nearly six percentage points more than a year ago. Regional government debt totals 12.4% of the GDP, an increase of 2.2% year-to-year, and the increase for local governments remains flat at 3.5%.
