Financial flows and balance sheets of households and non-financial corporations in 2019

Abstract

The Financial Accounts of the Spanish Economy show that in 2019 households received, for the second consecutive year, positive net bank financing in a moderate amount, similar to that received in 2018, mainly owing to the increase in consumer and other lending. These developments were compatible with a further reduction in household bank debt (to 57% of GDP at year-end, down 2 percentage points (pp) from the level in 2018 and 29 pp from its peak in 2010). At the same time, the gross financial wealth of households increased – unlike in 2018 – mainly as a result of the rise in value of their financial portfolio, in line with the appreciation of stock market indices and fixed-income securities. As regards firms, the net flow of bank lending received from resident financial institutions was once again negative, in an amount slightly lower than that of the previous year, contributing to a drop in their debt ratio to 73% of GDP, down 2 pp from 2018 and 47 pp from the maximum levels recorded in mid-2010. Finally, in contrast to the previous year, non-financial corporations’ own funds increased, owing to both fund raising via this channel and, to a greater extent, the increase in the value of these instruments.