Spain’s next government has a tough road ahead. Beyond tackling the persistent housing crisis and rising inflation that affects everyone’s daily wallet, officials will have to manage a very tight budget. It is a balancing act that will define the country’s economic future as the political landscape shifts following the upcoming elections.
Interestingly, the private sector is handling things differently. Families and businesses are actually lightening their debt loads. Spanish household debt dropped to 42% of GDP recently, sitting well below the Eurozone average. Meanwhile, companies have kept their debt stable at 82%. Instead of borrowing more, both groups are busy saving, choosing to put their money into deposits, stocks, and other financial assets.