While at first glance Spain’s 2023 fiscal performance appears favorable, lack of adjustment on the structural deficit paints a less optimistic picture going forward. Continued structural fiscal adjustment will be needed to improve the probability of compliance with the new EU fiscal deficit targets.
El objetivo de esta nota técnica es ofrecer una visión panorámica y rigurosa de la deuda pública en España: su pasado, la correcta interpretación de su sostenibilidad, y sus posibles trayectorias futuras en función de las fuerzas inerciales y las decisiones de ajuste fiscal que se adopten.
Este artículo aborda las perspectivas fiscales de España para el cierre del ejercicio 2023 y los desafíos presupuestarios para 2024.
After Spain’s public deficit initially soared to 10% of GDP and the public debt level rose to historical highs of 120% of GDP in the wake of the pandemic, reactivation of the economy and significant growth in tax revenue has since helped to underpin improvement in the
county’s fiscal metrics. However, under a stricter EU fiscal framework, budgetary stability in Spain will face significant hurdles, unless further fiscal adjustments and reforms are
implemented.