Spain's Public Debt Soars To 79.8% of GDP
- Written by: John Galt
- Published in Economics
cnbc.com | Spain's public debt will reach 79.8 percent of gross domestic product in 2012, up from 68.5 percent expected in 2011, a document detailing the country's 2012 budget showed on Tuesday.
Spain's debt-to-GDP ratio is substantially lower than the other countries struggling most in Europe's debt crisis, but it is already well above the European Union's recommended 60 percent ceiling and will continue to rise largely due to its inability to generate growth while it cuts budget spending.
Spain will make fewer 15-30-year bond launches this year, reducing the average maturity of the country's bonds in circulation to between 6.2 to 6.4 years, the document detailing the country's 2012 budget showed on Tuesday.