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Spanish Economic and Financial Outlook

Title article:
Public debt sustainability: Spain in the European context
Authors:
Joaquín Maudos
Abstract:

EN:
As is the case of other distressed euro area countries, the impact of the crisis has deteriorated Spain´s public debt ratio, as well as its net international investment position. Current debt dynamics are raising concerns among investors over the country´s debt sustainability outlook, given growth and interest rate assumptions for the coming years, together with expected difficulty in reaching the necessary primary surplus. Market tensions have eased in the near term, but continued correction of fiscal and external imbalances will be needed.

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