Spain’s 2023 Financial Year: Meeting EU Targets, Improving GDP and Growth, and Expanding Welfare Services

Spain meets deficit goal and finishes 2023 with 3.64% GDP.

Spain closed the 2023 financial year with a public deficit of 3.64% of GDP including financial aid, slightly lower than the provisional 3.66% reported last week by the Minister of Finance, Mara Jess Montero. Despite this slight decrease in the deficit, Spain continued to fulfill its commitments to Brussels by meeting and even surpassing the 3.9% forecast committed to the European Commission. This marks the fourth consecutive year that Spain has met its targets to reduce its public deficit.

The Ministry of Finance provided Eurostat with the official closing data for 2023, which was attributed to economic growth and employment growth in Spain. The country grew at a rate of 2.5% in 2023, five times more than the euro zone average, while a record number of Social Security affiliates reached 21 million employed individuals. However, despite these positive factors, Spain also reinforced its Welfare State and social protections to combat the effects of the war in Ukraine.

Since the start of the pandemic in 2020, Spain has reduced its deficit by over 60 billion euros while expanding public services. The Social Security system closed 2023 with a deficit of 8,627 million euros, equivalent to 0.59% of GDP, despite record contributions and increased employment. Despite this slight increase in the Social Security Funds’ negative balance from -8,171 million euros (-0.54% of GDP) in 2022 to -8,411 million euros (-0.57%

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