A huge slab of debt after the recession

A huge slab of debt after the recession

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The Spanish economy will not only be one of the hardest hit by the recession stemming from the Covid-19 pandemic, according to the International Monetary Fund. Furthermore, the historical depression of economic activity and the enormous cost of measures to fight the pandemic and lessen the damage to the productive fabric will cause the public deficit to skyrocket to 9.5% of GDP this year.

In turn, the State’s massive recourse to debt to maintain the “safety net” promised by the Government to families and companies in the face of the social and health emergency will cause the debt to escalate to 113.4% of GDP at the end of This exercise. Although in the face of the unprecedented forced stoppage of the economy to contain the spread of the pandemic, the massive injection of public money is required to avoid the permanent destruction of productive capacity, the situation in which the public accounts found themselves before this unexpected shock by the Irresponsible waste of public resources by Sanchez since coming to power has been a drag on the government to act on a large scale as other countries have done to support families, companies and professionals since the start of the crisis, and it will also be a heavy burden on recovery from the crisis.

In fact, the IMF expects our economy to grow by 2021 only half of what GDP will fall this year, thus pushing away initial hopes of a V-shaped rebound after the health emergency. With a public deficit that will be the highest in the euro area and a debt that will also be among the highest (only surpassed by countries with historically high debt rates such as Italy or Greece), reaching levels not seen since the beginning of the 20th century, The future growth potential of our country will be diminished by the high need for resources to reduce the budget gap.

That is why it is so serious that Sanchez continues to fatten the bill for the pandemic crisis for public coffers, which sooner or later all Spaniards will have to pay out of pocket, with populist measures of unproductive spending in the medium term such as the harmful minimum income that Pablo Iglesias it has imposed the most orthodox government ministers.



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