Spain expects to start reducing its debt / GDP ratio in 2021

Spain expects to start reducing its Debt / GDP Ratio in 2021

MADRID, Jan 14 (Globe Live Media) – Spain expects to begin reducing its deficit and debt-to-GDP ratio in 2021 through an expected economic rebound after the 2020 contraction caused by the coronavirus, Economy Minister Nadia Calviño said on Thursday.

“In 2021 we hope that, thanks to strong growth, we can begin to reduce our deficit and our debt / GDP ratio,” the official said at a conference in Madrid.

The Spanish government expects the country’s economy to recover in 2021 with growth of more than 7% after the contraction of more than 11% estimated for 2020.

 

In the third quarter, Spain’s debt-to-GDP ratio reached 114.1% from 97.5% the previous year, as spending increased dramatically to cushion the blow of the pandemic while revenues fell.

The budget deficit is likely to have reached the equivalent of 11.3% of GDP in 2020, according to a government forecast, and is expected to narrow to 7.7% this year.

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