Cyprus outperforms EU peers in managing public debt
Cyprus’ gross government debt-to-GDP ratio stood at 70.5 per cent at the end of the second quarter, reflecting a drop both on an annual and quarterly basis.
In contrast, the eurozone’s debt ratio stood at 88.1 per cent, while the average for the European Union was slightly lower at 81.5 per cent, according to data released on Tuesday by Eurostat.
Cyprus experienced the largest reduction in government debt to GDP ratio during this period, declining by 2.1 percentage points from the first quarter of 2024 and by 10.0 percentage points year-on-year.
Conversely, the eurozone’s ratio rose to 88.1 per cent, up from 87.8 per cent in the previous quarter, while the EU’s debt-to-GDP ratio increased from 81.3 per cent to 81.5 per cent.
When compared to the same quarter in 2023, public debt ratios decreased in both the eurozone (from 88.8 per cent to 88.1 per cent) and the EU (from 81.9 per cent to 81.5 per cent).
At the close of the second quarter, 84.0 per cent of the eurozone’s general government debt consisted of securities, while 83.6 per cent in the EU was similarly structured.
The debt also comprised 13.4 per cent from loans in the eurozone and 13.9 per cent in the EU, along with 2.5 per cent from foreign currency and deposits in both regions.
Due to EU member states’ involvement in lending to certain countries, quarterly figures for intergovernmental lending were also published.
These amounted to 1.5 per cent of GDP in the eurozone and 1.3 per cent in the EU by the end of the second quarter of 2024.
Among EU member states, the highest public debt to GDP ratios at the end of the second quarter were recorded in Greece (163.6 per cent), Italy (137.0 per cent), France (112.2 per cent), Belgium (108.0 per cent), Spain (105.3 per cent), and Portugal (100.6 per cent).
The lowest ratios were noted in Bulgaria (22.1 per cent), Estonia (23.8 per cent), and Luxembourg (26.8 per cent).
In comparison to the first quarter of 2024, nine member states saw an increase in their debt-to-GDP ratio by the end of the second quarter, while seventeen recorded a decrease, with Denmark maintaining stability.
The most significant increases occurred in Finland (+2.0 percentage points), Austria and Italy (both +1.8 percentage points), France (+1.6 percentage points), Portugal (+1.2 percentage points), Poland (+0.9 percentage points), and Sweden (+0.6 percentage points).
The largest reductions were observed in Cyprus (-2.1 percentage points), Croatia (-2.0 percentage points), Greece (-1.8 percentage points), Lithuania (-1.7 percentage points), Spain (-0.9 percentage points), the Czech Republic (-0.8 percentage points), the Netherlands, Germany (-0.7 percentage points), and Romania (-0.6 percentage points).
When comparing to the second quarter of 2023, thirteen member states recorded an increase in their debt-to-GDP ratio by the end of the second quarter of 2024, while another thirteen saw a decrease, with the Czech Republic remaining unchanged.
The most considerable increases were in Finland (+5.2 percentage points), Estonia (+4.7 percentage points), Latvia and Poland (both +4.1 percentage points), Austria (+3.1 percentage points), Belgium (+2.3 percentage points), Romania (+2.2 percentage points), and Slovakia (+1.0 percentage points).
The most substantial decreases were seen in Cyprus (-10.0 percentage points), Greece (-8.9 percentage points), Portugal (-8.1 percentage points), Croatia (-5.7 percentage points), Spain (-3.5 percentage points), the Netherlands (-2.2 percentage points), Germany (-1.7 percentage points), and Luxembourg (-1.3 percentage points).
