May 22, 2024 6:24 pm
Spain meets deficit target and ends 2023 at 3.64% of GDP, informs Eurostat

In 2023, Spain ended the financial year with a public deficit of 3.64% of GDP, slightly below the provisional figure of 3.66% announced by Minister of Finance Mara Jess Montero. The Ministry explained that this data changed minimally after receiving the final national accounting data, with the deficit standing at 3.65% excluding financial aid. Despite challenges posed by the war in Ukraine, Spain has managed to reduce its deficit while reinforcing the Welfare State.

Spain’s economic growth was a significant factor in reducing its deficit in 2023, with an impressive growth rate of 2.5%, five times higher than the euro zone average. Additionally, Spain’s dynamic employment sector played a vital role, with a record number of Social Security affiliates reaching 21 million employed individuals.

The Social Security system closed out the year with a deficit of 8,627 million euros or 0.59% of GDP, despite earning 201,317 million euros in contributions or 9.2% more than in 2022. This is due to a significant increase in contributions from employed individuals, which led to an overall negative balance for Social Security Funds at the end of 2023 at -0.56% of GDP.

Despite these challenges and global economic uncertainties, Spain’s financial performance in 2023 highlights its commitment to fiscal responsibility and economic growth. Its ability to reduce its deficit while strengthening social programs underscores its resilience and dedication to financial stability.

In conclusion, Spain’s successes in managing its public finances and maintaining a strong economy during uncertain times demonstrate its unwavering commitment to maintaining financial stability while continuing to provide essential social programs for its citizens.

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