Spain Is In Debt Up To Its Eyeballs

Spain‘s debt with the world reached 1.4 billion dollars or 1.1 billioneuros in 2013, making it the second most indebted country in the world after the United States, as recorded by the International Monetary Fund (IMF) in the fourth chapter of the new edition of its report ‘Global Economic Prospects’.

The negative balance of 1.1 billion euros that includes net foreignassets of Spain is second only to the 4.5 billion euros in the UnitedStates and is quite above the third country in debt, Brazil with750,000 million euros.

However, when compared to the proportion of these assets represents in GDP, in the case of Spain the percentage reaching103.1%, while the United States is at 34% and Brazil at 33.4%.

According to the statistics of the Fund, Spain‘s debt with foreign creditors is much higher than that recorded in 2006, when it stood at 862,000 million dollars, which then amounted to 69.7% of GDP.

By contrast, the largest creditors in the world in 2013 were Japanand China with positive net foreign assets of 3.06 and 1.69 billion dollars or 2.42 billion euros and 1.34, respectively.

Despite this debt, the current account balance of Spain has declined in recent months, since 2013 ended with a surplus incontrast to the deficit of 111.000 billion in 2006, the second largest in the world.

Moreover, the IMF believes that, despite progress in reducingcurrent account imbalances, there remains a lot of work to reducedeficits and current “excessive” account surpluses in several advanced and emerging economies.

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