The highest levels in the ratio of government debt to GDP at the end of the fourth quarter of 2023 were registered in Greece (161.9%), Italy (137.3%), France (110.6%), Spain (107, 7%) and Belgium (105.2%), and the lowest – in Estonia (19.6%), Bulgaria (23.1%), Luxembourg (25.7%) and Denmark (29.3%). This is according to Eurostat statistics published on Monday.
Government debt to GDP as a percentage, fourth quarter 2023.
Graphics: Eurostat
Compared to the third quarter of 2023, ten member states recorded an increase in the debt/GDP ratio at the end of the fourth quarter of this year, and seventeen – a decrease (comparison on a quarterly basis). The largest increase in the ratio was observed in Bulgaria (+2.1 percentage points – p.p.), Latvia (+1.6 p.p.), Finland (+1.5 p.p.), Estonia ( +1.4 p.p.), Sweden (+1.2 p.p.) and Poland (+1.0 p.p.). At the same time, the biggest decline was recorded in Portugal (-8.4 pp), Greece (-3.7 pp), Slovenia (-2.6 pp), Belgium (-2 .4 p.p.), Slovakia (-2.3 p.p.), Spain (- 2.1 p.p.), Cyprus (-1.7 p.p.), Hungary (-1.5 pp) and France (-1.4 pp).
Changes in the government debt-to-GDP ratio by country, Q4 2023 to Q3 2023
Graphics: Eurostat
Compared to the fourth quarter of 2022, nine Member States recorded an increase in the debt-to-GDP ratio at the end of the fourth quarter of 2023 (year-on-year comparison), and eighteen Member States recorded a decrease. Increases in the ratio were registered in Finland (+2.3 p.p.), Latvia (+1.8 p.p.), Romania (+1.3 p.p.), Estonia (+1.1 p.p. p.), Luxembourg and Belgium (both +0.9 p.p.), Bulgaria (+0.5 p.p.). ), Poland (+0.4 p.p.), as well as Lithuania (+0.2 p.p.). The biggest decline was observed in Portugal (-13.3 p.p.), Greece (-10.8 p.p.), Cyprus (-8.3 p.p.), Croatia (-4.8 p.p. . p.), Spain (-4.0 p.p.), the Netherlands (-3.7 p.p.), Slovenia (-3.3 p.p.), Italy (-3.2 p.p. .) and Germany (-2.4 p.p.).
At the end of the fourth quarter of 2023, the gross government debt-to-GDP ratio in the euro area stood at 88.6%, compared to 89.6% at the end of the third quarter of 2023. In the EU, the ratio also decreased from 82.4% in 81.7%.
Compared to the fourth quarter of 2022, the government debt-to-GDP ratio also decreased in both the euro area (from 90.8% to 88.6%) and the EU (from 83.4% to 81.7%).
At the end of 2023, the total government debt consists of:
- 83.4% debt securities in the euro area and 82.9% in the EU,
- 13.8% loans in the Eurozone and 14.4% in the EU and
- 2.8% currency and deposits in the Eurozone and 2.7% in the EU.
Due to the involvement of EU member state governments in lending to certain member states, Eurostat also publishes quarterly data on intergovernmental lending (IGL). These loans as a percentage of GDP at the end of the fourth quarter of 2023 amounted to 1.5% in the euro area and 1.3% in the EU.
Gross government debt is defined as the consolidated gross debt of the entire general government sector at the end of the quarter (in nominal value). General government debt consists of general government liabilities in the following financial instruments: currency and deposits, debt securities and loans.
