The public debt to GDP ratio falls in the euro area

The European Statistical Office (Eurostat) announced the public debt and budget deficit data for the third quarter of the European Union (EU) and the Eurozone for 2022. Consequently, the relationship between public debt and Gross Domestic Product (GDP) , which was 94.2 percent in the euro area in the second quarter, rose to 93 percent in the third quarter.

In the EU, the ratio between public debt and GDP, which was 86.4 percent in the second quarter, was determined at 85.1 percent in the third quarter. This rate was 89.7 percent in the EU and 97.3 percent in the euro area in the third quarter of 2021.

On the other hand, the total public debt reached 12 trillion 152 billion euros in the Eurozone and 13 trillion 180 billion euros in the EU.

THE HIGHEST DEBT RATE IS IN GREECE

Among the EU member states, the country with the highest public debt-to-GDP ratio in the third quarter of 2022 was Greece with 178.2 percent. Greece was followed by Italy with 147.3 percent, Portugal with 120.1 percent, Spain with 115.6 percent, France with 113.4 percent and Belgium with 106.3 percent.

In said period, the countries with the lowest public debt/GDP ratio were Estonia with 15.8 percent, Bulgaria with 23.1 percent and Luxembourg with 24.6 percent.

According to EU rules, the public debt of member states must not exceed 60 percent of their GDP under normal circumstances. When this limit is exceeded, the EU Commission must be notified of the measures to be implemented and an effective fight must be carried out.

THE BUDGET DEFICIT IN THE EU EXCEEDS 3 PERCENT

The ratio of the budget deficit to GDP, which was 1.8 percent in the second quarter of last year, rose to 3.2 percent in the third quarter.

In the euro zone, the ratio of the budget deficit to GDP increased from 2 percent to 3.3 percent in the same period. (AA)