Spain finished the 2023 financial year with a public deficit of 3.64% of GDP, slightly lower than the provisional 3.66% announced by Minister of Finance Mara Jess Montero. The Ministry said that this data changed only slightly after receiving the final national accounting data, with the deficit standing at 3.65% excluding financial aid. Despite the challenges posed by the war in Ukraine, Spain has met and even surpassed its commitment to reduce the deficit for the fourth consecutive year, reaching a forecast of 3.9%.
The reduction in Spain’s deficit can be attributed to several factors, including economic growth and a dynamic employment sector. In 2023, Spain saw a remarkable growth rate of 2.5%, five times higher than the euro zone average. Additionally, there was an increase in Social Security affiliates, reaching a record number of 21 million employed individuals. Despite these challenges, Spain was able to maintain its Welfare State while reinforcing it through social programs.
The Social Security system also played a significant role in reducing the overall deficit in 2023, closing with a deficit of just 8,627 million euros or only 0.59% of GDP. This is despite earning €201,317 million euros in contributions from its members – an impressive increase of 9.2% compared to last year’s earnings. The Social Security Funds’ contributions saw an even more significant increase by about 10%, driven primarily by contributions from employed individuals who accounted for over half of total earnings.
In conclusion, Spain’s strong financial performance during this challenging global period demonstrates its commitment to fiscal responsibility and economic growth despite various obstacles that could have threatened stability and security.
Furthermore, it highlights how resilient Spain is in maintaining its Welfare State while strengthening social programs that benefit millions of people across Europe and beyond.
Overall, these achievements should serve as an inspiration to other countries seeking to strike a balance between economic prosperity and financial stability while maintaining their social obligations towards their citizens and communities alike.
Finally, it is worth noting that Eurostat has officially received Spain’s definitive closing data for the financial year ending December 31st, allowing for accurate comparisons with other member states within the EU bloc.
