Spain's debt soars to historic high of 125.3% of GDP amid Covid-19 crisis

Spain has seen its public debt hit the historic high of 1.39 trillion euros in March, the equivalent of 125.3% of its GDP, according to Bank of Spain figures made public on Tuesday.

First quarter public deficit was 13.7% higher this year than it was in March 2020 as the country struggles to counter the effects of the Covid-19 crisis.

This increase is largely due to the surge in Spanish government debt: 1.21 trillion euros at the end of the first quarter and 11.1% higher compared to the same time last year.

The debt of regional governments and local councils, on the other hand, has only risen by 3% to 307 billion and 22 billion euros respectively.

According to sources from Spain's Ministry of Economic affairs, debt tends to be higher in March before loans mature in April.

Because of this, they argue that public debt will be lower by the end of the year than it currently is and could still be on track to being 119.5% of the GDP as forecasted by the Spanish government.