The modest fall in government debt to GDP ratio for both the euro area and the EU is attributed to a rise in GDP outpacing the increase in government debt in absolute terms. From a year-on-year (YoY) perspective, the ratio also decreased in both regions: in the euro area from 95 per cent to 91.2 per cent and in the EU from 87.4 per cent to 83.7 per cent, as per Eurostat.
The Q1 2023 data revealed some significant disparities among member nations. The highest ratios of government debt to GDP were found in Greece (168.3 per cent), Italy (143.5 per cent), Portugal (113.8 per cent), Spain (112.8 per cent), France (112.4 per cent), and Belgium (107.4 per cent). In contrast, the lowest were recorded in Estonia (17.2 per cent), Bulgaria (22.5 per cent), Luxembourg (28.0 per cent), and Denmark (29.4 per cent).
Eleven member states experienced a rise in their debt to GDP ratio compared to the final quarter of 2022, while sixteen experienced a decrease. The most notable increases were seen in Luxembourg (3.4 percentage points), Belgium (2.2 pp), Austria and Latvia (both 2.1 pp), Romania (1.7 pp), and Hungary (1.5 pp). The most substantial decreases were recorded in Greece (minus 3 percentage points), Cyprus (minus 2.5 percentage points), the Netherlands (minus 1.8 pp), Estonia (minus 1.2 pp), Sweden (minus 1.1 pp), Poland (minus 1 pp), Ireland and Italy (both minus 0.9 pp).
YoY comparisons show that six member states saw a rise in their debt to GDP ratio at the end of Q1 2023, while twenty-one saw a decrease. Luxembourg (5.4 pp), Czechia (1.7 pp), Latvia (1.1 pp), Romania (0.7 pp), Bulgaria (0.5 pp), and Finland (0.2 pp) had increases, while significant decreases were observed in Greece (minus 21.2 pp), Cyprus (minus 18 pp), Portugal (minus 10.8 pp), Ireland (minus 8.9 pp), Italy (minus 7.9 pp), Croatia (minus 6.4 pp), Slovenia (minus 5.2 pp), Spain (minus 4.6 pp), and Poland (minus 3.8 pp).
Fibre2Fashion News Desk (DP)