Eurostat confirms that Spain will leave Excessive Deficit Procedure and reduced its deficit to 2.48% of GDP in 2018

Eurostat, the EU statistics office, confirmed on Tuesday that Spain will leave the Excessive Deficit Procedure it has been subjected to since 2009. The data published on Tuesday morning show that the public authorities closed 2018 with a public deficit of 2.48% of GDP. This is a fall of 0.6 percentage points on the figure of 3.08% posted in 2017. In other words, the public authorities as a whole reduced their deficit by 16.5% in 2018, a fall of 5.92 billion euros on the previous year.

The deficit published on Tuesday amounts to a fall of 0.15 percentage points on the figure of 2.63% notified on 29 March. This modification has taken place as a result of the habitual consultation and exchange of information process carried out between Eurostat and the Spanish authorities.

The figures notified by the General Intervention Board of the State Administration (Spanish acronym: IGAE) on 29 March initially provided for a higher Central Government expense for 2018 based on the principle of prudence.

Once the figures were adjusted and the validation process was concluded by Eurostat, the 2018 deficit figure for the Kingdom of Spain stands at 29.98 billion euros, 2.48% of its GDP. After excluding financial assistance, this stands at 2.47% of GDP.

Distribution by public sector

After analysing the deficit by sector, the Central Government closed 2018 with a deficit of 16.38 billion euros, amounting to 1.36% of GDP, compared with 1.89% in 2017. This is the public sector to most have reduced its deficit over the last year, with a drop of 5.66 billion euros, or down 25.7%.

For their part, the regional governments closed the year with a deficit of 2.81 billion euros, 0.23% of GDP. It should be remembered that 15 of the regions have met the deficit target, five of which closed 2018 with a surplus.

The Social Security Funds closed the year with a deficit of 17.09 billion euros, which equates to 1.41% of GDP. Lastly, local authorities posted a surplus for the seventh straight year, with a positive balance of 6.29 billion euros, or 0.52% of GDP.

Reduction in public debt

Tuesday's figures published by Eurostat also show an improvement in the public debt ratio notified in March. Public debt closed 2018 at 97.09% of GDP, compared with 98.12% in 2017.

This reduction of more than one percentage point is the largest in a year since 2014 and is in line with the government's forecast.

Non official translation