A complex financial landscape
Extremadura’s public debt has reached historic levels, standing at 21.8% of its Gross Domestic Product (GDP) at the end of 2023. This figure, although lower than 22.8% the previous year, is still the highest ever registered in the region, according to data from the Bank of Spain.
Constant growth
Despite the percentage reduction, Extremadura’s debt has grown in absolute terms, reaching the notable figure of 5,322 million euros. This increase is largely due to the economic growth experienced by the region, which has led to increased public spending.
A national context
The situation in Extremadura is part of a national context of public debt. The Spanish public debt closed 2023 at 107.7% of GDP, which represents a decrease of 3.9 points compared to the previous year. This decrease is mainly attributed to economic growth, which has made it possible to offset the increase in debt.
The distribution of debt
The majority of the Spanish public debt falls on the central administration, which accumulates a record of 1,434,090 million euros. The autonomous communities have also increased their debt, reaching 22.2% of GDP. Local corporations and Social Security have also seen an increase in their debt.
Extremadura in comparison
Compared to other Spanish regions, Extremadura is in sixth place in terms of debt, behind the Valencian Community, Castilla-La Mancha, Murcia, Catalonia and the Balearic Islands. However, the region has managed to reduce its debt by 1 percentage point compared to the previous year.
The most and least indebted regions
The Valencian Community continues to be the most indebted region, with 42.2% of its GDP. At the opposite extreme, Navarra, the Canary Islands, the Basque Country and Madrid have the lowest debt levels, all of them below 13% of GDP.
The municipal debt
Among municipalities with more than 300,000 inhabitants, Madrid tops the debt list, with 1,960 million euros. They are followed by Barcelona, Zaragoza, Murcia and Seville. It should be noted that Zaragoza has managed to reduce its debt by 4.1% compared to the previous year.
The future of debt
Managing public debt is a constant challenge for Extremadura and the rest of Spain. Controlling spending, finding new sources of income and promoting economic growth are key factors in reducing debt and ensuring long-term financial sustainability.
