your savings grow by 17%

The families from Spain They give an economic lesson to Pedro Sánchez, the president of the Government, and fire their saving 17.6% in the second quarter of 2024 compared to the previous three months, up to 59,031 million euros, according to information from the National Statistics Institute (INE). Meanwhile, the socialist Executive has achieved a record of public debt of 1,626 billion euros in the same period, according to data published this Monday by the Bank of Spain.

Thus, in the second quarter of 2024, Spain’s public debt reached a historical record of 1,626 trillion 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 one point, from 106.3% to 105.3%, due to the growth of economic activity.

In year-on-year terms, public debt increased by 55,946 million euros, a growth of 3.6%, although the weight on GDP fell from 108.8% in the second quarter of 2023 to 105.3% in 2024.

Public debt in Spain

By administration, the debt was divided as follows:

• Central administration: Debt rose 6.3% year-on-year, reaching 1,485 trillion euros, representing 96.2% of GDP, compared to 98.5% the previous year
• Autonomous communities: Its debt grew by 3.1% year-on-year, standing at 327,940 million euros, equivalent to 21.9% of GDP, compared to 22.7% in 2023
• Local corporations: Its debt decreased by 0.9% year-on-year, to 23,524 million euros, reducing its ratio over GDP to 1.5%
• Social security: Debt increased by 9.4% year-on-year, reaching 116,171 million euros, with a slight increase in its ratio over 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 budget imbalancealthough these operations do not affect the total debt of the public sector, since they are transactions between subsectors.

Lesson from families to Sánchez

Meanwhile, families have given Sánchez an economics lesson by increasing their savings. Thus, in the second quarter, Spanish households placed their savings rate at 21.2% of their gross disposable incomecompared to the rate of 19.6% in the same period of 2023.

In the second quarter of 2024, households in Spain achieved save more than they spent. The disposable income of households grew by 8.7% year-on-year, reaching 278,195 million euros, while their consumption spending was 219,807 million euros, 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 stood at 13.1% of its disposable income, one point below the previous quarter.

Thanks to these savings, households were able finance your investment in the same period, showing a financing capacity of 41,212 million euros. This represents an increase of 20.3% in relation to the 34,265 million euros registered in the second quarter of the previous year.

In general, 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 a year before.

However, this result is a consequence of the financing capacity recorded by households and financial institutionssomething that contrasts with the need for financing shown by non-financial corporations and public administrations (AAPP).

That is, Spanish families and financial institutions have saved the economy from the red numberscaused, above all, by the Administration managed by Pedro Sánchez, which had a deficit of 27.8 billion euros in the second quarter.

In fact, in seasonally adjusted terms, the Administration’s financing need reached 3.2% of GDP, one tenth more than in the first quarter. That is, while households tighten their belts, the State continues to be in deficit.