Spanish public debt hit record high in June on COVID spending

Spanish public debt rose to a record high of 1.29 trillion euros (1.53 trillion U.S. dollars) in June, mainly lifted by spending linked to the impact of the coronavirus pandemic, data from the Bank of Spain showed on Tuesday.

The total debt rose by 32 billion euros from the preious month, pushing the debt-to-GDP ratio to 110 percent according to Reuters calculations based on quarterly economic data released by the National Statistics Institute (INE) late last month, from just below 100 percent as of the end of the first quarter.

The government revised the 2020 budget deficit forecast to 10.34 percent of GDP in May and said it expected the debt ratio to rise to 115.5 percent of GDP at the end of 2020.

The Bank of Spain said in June the debt-to-GDP ratio could rise up to 126.7 percent in 2020 in a worst-case scenario.

(Top image: People walk along La Bola street in Ronda, Spain, May 18, 2020. /Reuters)

Source(s): Reuters