Spain | The most important statistic almost no one has heard of

Summary

The imbalance between the value of our assets abroad and of Spanish assets held by foreigners has narrowed from almost 100% of GDP 10 years ago, to just 44% of GDP at the end of 2024.

Key points

• Key points:
• In simple terms: The Spanish economy continues to reduce its debt with the rest of the world. Going forward, the high uncertainty makes it advisable to maintain this trend.
• The decline in net debt with the rest of the world is the result of several years in which the economy's savings have exceeded investment spending. This surplus reached its peak in 2024, with an amount equivalent to 4.2% of GDP.
• Perhaps more surprising is the fact that these numbers coexist with a public debt of more than 100% of GDP and a deficit of more than 3% of GDP. In other words, the private sector shows an excess of savings over investment of more than 7% of GDP.
• The household savings rate is 5 percentage points above the average of the 20 years prior to the pandemic. Investment (as a percentage of GDP) is still below its 2019 level.
• Economic policy should change in such a way that the trend of deleveraging is maintained, but with greater consumption and private investment.

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