Spain's public debt ratio falls to 100.7 percent of GDP in 2025
Spain's public debt-to-GDP ratio fell by 1 percentage point to 100.7 percent in 2025, contrasting with rising debt levels across the broader euro area. The decline was primarily driven by nominal economic growth.
Spain bucks euro area debt trend
Spain's public debt-to-GDP ratio fell by 1 percentage point in 2025 to 100.7 percent, reaching a total volume of 1,698.2 billion euros.
This downward trajectory, continuing a trend that began in 2021 after the pandemic peak of 119.3 percent, was primarily driven by nominal economic growth.
The reduction sharply contrasts with the broader euro area, where the average debt ratio rose by 0.9 percentage points to 87.4 percent.
Among major European economies, Germany saw an increase of 1.3 percentage points to 63.5 percent, France climbed 2.9 percentage points to 115.6 percent, and Italy rose 2.4 percentage points to 137.1 percent.
Consequently, Spain emerged as the only major economy in the region to successfully continue reducing its public debt ratio relative to GDP during 2025.
Subsector burdens and maturity profiles
A breakdown by subsectors shows the Central Administration remains the most heavily indebted at 92.6 percent of GDP, down 0.8 percentage points from 2024.
The Autonomous Communities successfully lowered their debt ratio by 0.8 percentage points to 20.2 percent of GDP, while Social Security stood at 8.1 percent.
Regarding debt structure, long-term issuance accounts for 94.8 percent of the total, with an average maturity of 8.1 years, closely aligned with the euro area average of 8.9 years.
Meanwhile, foreign holdings of Spanish debt increased to 48.9 percent.
Fiscal resilience with structural caveats
Spain's continuous debt reduction is a notable achievement amid broader European fiscal slippage.
However, remaining above the 100 percent threshold leaves public finances vulnerable to macro shocks.
Without deeper structural reforms, cyclical growth tailwinds risk masking enduring structural weaknesses.