Greek Public Debt to GDP Ratio Highest in EU

Greek public debt to GDP ratio continues to be the highest in the EU for Q2 2024 at 163.3%, even though according to Eurostat, it recorded the second largest reduction on a year-to-year (YTY) basis at -8.9 pp, with Cyprus having the largest decrease at -10.0 pp.

In terms of a monthly change, the largest decreases were recorded in Cyprus (-2.1 pp), and Croatia (-2.0 pp), with Greece (-1.8 pp) coming in third.

Public debt in the Eurozone reached 88.1% of GDP in the second quarter of the year, up from 87.8% at the end of the first quarter and matching the 88.1% figure recorded during the same period in 2023. In the EU, the debt ratio stood at 81.5%.

According to Eurostat, at the end of Q2 2024, general government debt consisted of 84.0% securities in the Eurozone and 83.6% in the EU, 13.4% loans in the Eurozone and 13.9% in the EU, and 2.5% currency and deposits in both regions.

Debt by Member State

After the Greek public debt, the highest public debt-to-GDP ratios at the end of Q2 2024 were recorded in Italy at 137.0%, followed by France (112.2%), Belgium (108.0%), Spain (105.3%), and Portugal (100.6%). The lowest ratios were in Bulgaria (22.1%), Estonia (23.8%), and Luxembourg (26.8%).

The largest increases were observed in Finland (+2.0 percentage points – pp), Austria and Italy (both +1.8 pp), France (+1.6 pp), Portugal (+1.2 pp), Poland (+0.9 pp), and Sweden (+0.6 pp).

Year-over-Year Comparisons

The largest year-over-year increases were seen in Finland (+5.2 pp), Estonia (+4.7 pp), Latvia and Poland (both +4.1 pp), Austria (+3.1 pp), Belgium (+2.3 pp), Romania (+2.2 pp), and Slovakia (+1.0 pp).

Deficit Figures

Regarding the general government deficit as a percentage of GDP, it stood at 3.0% in the Eurozone and 3.1% in the EU. In Q2 2024, the Eurozone’s deficit-to-GDP ratio remained unchanged compared to Q1 2024, while the EU’s ratio increased to 3.1%, up from 2.9% the previous quarter.

Government Revenues and Expenditures

In Q2 2024, total public revenues in the Eurozone amounted to 46.2% of GDP, up from 45.8% in Q1 2024, primarily due to an increase in seasonally adjusted public revenues in absolute terms, as well as nominal GDP growth. In absolute terms, seasonally adjusted total revenues in the Eurozone rose by about €25 billion compared to Q1 2024. Total government expenditures in the Eurozone reached 49.2% of GDP, up from 48.8% the previous quarter, due to an increase in seasonally adjusted total government spending by about €25 billion.