Albacete’s Zero Debt Policy Spurs Local Economic Growth and Investment
Albacete's provincial government credits zero debt and local investments for its robust economic growth and export success in 2025.
- • Diputación de Albacete eliminated its debt from 53% to 0% in nine years, enabling direct local investment.
- • Regional exports reached approximately €6.526 billion in the first seven months of 2025.
- • 66% of investment funds were directed to local companies, including €3.4 million to SMEs in construction in 2024.
- • Fiscal stability and targeted investments have fostered local autonomy and business confidence.
Key details
José González, deputy of the Provincial Government of Albacete, emphasized the province's financial stability at the XIII Foro Castilla-La Mancha, attributing the region’s economic growth to the Diputación de Albacete’s achievement of ‘zero debt.’ Over nine years, the Diputación reduced its indebtedness from nearly 53% in June 2015 to 0%, accomplished by amortizing nearly €40 million during two mandates without reliance on financial markets. This fiscal responsibility has facilitated a robust investment plan focused on enhancing public services and fostering local autonomy and business confidence.
In the first seven months of 2025, regional exports amounted to approximately €6.526 billion, with machinery and agri-food sectors excelling, supported by the JCCM amid global uncertainties. Importantly, in 2024, 66% of investment funds were retained within Albacete companies, channeling over €3.4 million specifically to local SMEs in construction. This reinvestment strategy has strengthened the local economy and promoted sustainable development.
González affirmed the commitment of the Diputación to maintaining stability and continued economic growth through direct investment in municipalities and local businesses, enhancing the province's capacity to thrive despite external economic pressures. This model highlights how fiscal discipline combined with targeted local investment can serve as a foundation for provincial economic expansion.