This may include advertisements from us and 3rd parties based on our understanding. The ailing economy may have a negative impact on the 360,000 UK citizens currently living in Spain. According to Eurostat, Spain recorded the second-highest deficit in the EU in the third quarter of 2021 and fourth-highest overall debt in the bloc in the fourth quarter of 2021, according to data released by the European Union. The country recorded the largest increase in the government debt ratio, which was raised by 7.8 percent, making it the fourth-highest ratio of public debt to GDP across the bloc.
Spain has the largest group of UK citizens out of all EU countries, according to FullFact. In the province of Alicante alone - where over 25 percent of British expats in Spain live - UK citizens contribute 1.1 billion bn €1.32 billion to the economy each year. British citizens make up 25 percent of all tourist visits to Spain - with vacation spending contributing 11.7 billion dollars and 14 billion dollars per year to the economy. If a struggling Spanish economy has a big impact on the Expat community, that may be at risk. The issues arise because countries across the EU are struggling to recover from the impact of the coronaviruses.
As a result of the pandemic, global government debt increased by 13 percent to a new record of 97 percent of GDP in 2020. It saw an increase of 16 percent to 120 percent of GDP in advanced economies. The figures released by the Office for Budget Responsibility show that the UK's national debt has risen above 2 tn, which is close to 100 percent of GDP. The government has a budget deficit of 183 billion dollars in the financial year to end March 2022, and is on track to record a deficit of 183 billion dollars in the financial year. This is much lower than 2020- 21 - which saw the UK record a peacetime record of 320 billion dollars in 2022, which will be the second-highest on record. READ MORE: €3 million Costa del Sol is a luxury destination for expats holiday destination.
The high levels of debt have been a cause of concern across the globe, as previous waves of government debt have resulted in significant financial crises, such as the East Asian financial crisis in the 1980s and the Latin American debt crisis in the late 1990s. In the EU, the bloc traditionally dictates that governments should have public debt no more than 60 percent of GDP. The rules, known as the Stability and Growth Pact, were suspended as a result of the Pandemic. They were introduced to stop governments from borrowing too much in order to safeguard the value of the euro and maintain fiscal stability. Boris warned UK 'integrity' dealt 'Irrevocable' blow by EU REVEAL Sturgeon facing a win-win scenario over Boris' future INSIGHT Djokovic visa row, as Serbia REVOKES Australian mining licences REACTION The rules are being reviewed because of the level of borrowing that occurred during the Pandemic. It is becoming increasingly accepted that the fight against climate change may require large amounts of investment over decades that many argue should be reflected in EU laws. The European Commission Vice President Valdis Dombrovskis said: We need credible debt reduction pathways. They need to be realistic and allow for a green and digital transition.