The bill of the coronavirus crisis: the debt increases 450 million a day

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• Balance: The tourist hole worsens: 106,000 million will be lost and Spain falls back to activity levels of the 90s

Public debt continues to rebound at a dizzying rate as a direct consequence of the coronavirus crisis and the measures that the Government has deployed to cope with the economic recession.

So much so that the total liability of the Public Administrations closed August at 1.29 trillion and has already risen to more than 100 billion in the first eight months of the year.

Or even more clearly:

.

This is evidenced by the data published yesterday by the Bank of Spain, and which also shows that in the aforementioned month of August the debt grew by 7,537 million.

A remarkable figure, without a doubt, but that pales with those registered in March, May and, especially, June: only in that month, liabilities shot up by more than 32,000 million, which means that

.

These were the months in which the greatest effort was made by the Administration and, especially, by the State, which is the area that has centralized the weight of the measures deployed to fight the crisis and that already has a debt of more than 1, 1 trillion.

However, actions such as the temporary employment regulation files (ERTE) and the situation of the labor market itself have also led to a notable increase in

, which means, at the as in the previous cases, the highest figure in history.

The Government's estimate is that the debt will reach 118% of the Gross Domestic Product (GDP) at the end of the year, although it seems likely that this estimate will fall short.

BBVA Research, in its

report

, estimated last Wednesday that the figure will be 120% and if it is taken into account that its nominal GDP forecast is 1.107 trillion, the result is that the liability

.

In all these dizzying figures, however, there is another very relevant factor that goes beyond the crisis situation:

.

The Government of José Luis Rodríguez Zapatero managed to reduce the liability to 35% of GDP and keep it below 400,000 million.

But after the outbreak of the previous crisis, that same Executive began to unleash increases that, as in this year, came to exceed 100,000 million annually.

The government of Mariano Rajoy did not correct this situation either, and in the boom years there were only reductions in relative but not absolute terms, that is, the debt / GDP ratio only fell due to the growth of the economy itself.

This has been revealed on more than one occasion by the Bank of Spain, which has also pointed out that the Executive of Pedro Sánchez has done exactly the same.

And what's more, Spain came to the crisis with less space and capacity to act because in 2019

by a few tenths.

Highs also in the Eurozone

Also this Thursday it was learned that, in the second quarter of the year, the budgetary imbalance for the euro zone as a whole reached 11.6% from 2.5% in the first three months of the year, while debt reached the 95.1%.

"In the second quarter of 2020, marked by the containment of Covid-19 in all Member States,

in the euro area and the EU since the beginning of the time series and the largest increase quarterly, "Eurostat reported.

The highest levels of public debt in the EU corresponded to Greece (187.4%), Italy (149.4%), Portugal (126.1%), Belgium (115.3%), France (114.1%) , Cyprus (113.2%) and Spain (110.1%), all of them above 100% and the average for the euro area and the European Union, according to Europa Press.

According to the criteria of The Trust Project

Know more

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