Business and household debt grew during the third quarter of 2024 compared to the previous year, although it decreased as a percentage of GDP. This is how it emerges Financial Accounts of the Spanish Economy of the third quarter of 2024, published today by the Bank of Spain.
The fact is that the consolidated debt of companies, households and non-profit institutions stood at 1,709 billion euroswhich represents an increase of 1.6% compared to the same quarter of 2023. In terms of GDP, on the other hand, the metric showed moderation, standing at 109% compared to 114.4% last year.
The net financial wealth of households, for its part, stood at 2,327 billion euros in September 2024, an increase of 11.7% compared to a year earlier. This metric is obtained by deducting debts from the savings that families accumulate. As a percentage of GDP, net financial assets represented 148.4%, 6.7% more than last year.
Regarding the consolidated debt of the companies Alone, this increased by 28.4 billion euros, from 988.4 in the third quarter of 2023 to 1,016 billion. Regarding GDP, the data follows the general trend, registering a moderation from 67.2% to 64.8%, not including inter-company debt.
The homes and nonprofit institutions, on the other hand, found reductions in both measures of debt. In all, the debt was reduced by 2.2 billion euros, to 691.9 billion, while in relative terms of GDP it stood at 44.1%, compared to 47.2% of the previous period.
The reasons for the evolution of the debt are explained by the slightly positive values ​​of the accumulated net operations, according to the Bank of Spainas well as by other flows to a lesser extent. The amount of net operations accumulated in four quarters, until September 2024, was 24.3 billion euros, 1.5% of GDP.
Another of the metrics included in this measurement is the financial assets of households and non-profit institutions. These rose in the third quarter of the year to 3,074 billion of euros, which reflects an increase of 8.6% compared to 2023. It then represents a revaluation of 168 billion, and a net acquisition of assets of 75.5 billion from the end of September 2023.
The revaluation of these assets was concentrated in equity shares and investment funds, as was also the case in the acquisition of assets. The bulk of household financial assets remained in cash and deposits (35% of the total), followed by shares in capital (31.6%), shares in investment funds (16.1%) and insurance and pension funds (12.1%).
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