Government debt fell to 90.1% of GDP in euro area

Government debt fell to 90.1% of GDP in euro area

Government debt fell to 90.1% of GDP in euro area

The FINANCIAL -- At the end of the third quarter of 2016, the government debt to GDP ratio in the euro area (EA19) stood at 90.1%, compared with 91.2% at the end of the second quarter of 2016. In the EU28, the ratio decreased from 84.2% to 83.3%.

Compared with the third quarter of 2015, the government debt to GDP ratio fell in both the euro area (from 91.5% to 90.1%) and the EU28 (from 85.9% to 83.3%).

At the end of the third quarter of 2016, debt securities accounted for 79.7% of euro area and for 81.0% of EU28 general government debt. Loans made up 17.3% and 15.1% respectively and currency and deposits represented 3.0% of euro area and 3.9% of EU28 government debt. Due to the involvement of EU governments in financial assistance to certain Member States, quarterly data on intergovernmental lending (IGL) is also published. The share of IGL in GDP at the end of the third quarter of 2016 amounted to 2.2% in the euro area and to 1.6% in the EU28.

Government debt at the end of the third quarter 2016 by Member State

The highest ratios of government debt to GDP at the end of the third quarter of 2016 were recorded in Greece (176.9%), Portugal (133.4%) and Italy (132.7%), and the lowest in Estonia (9.6%), Luxembourg (21.5%) and Bulgaria (28.7%). 

Compared with the second quarter of 2016, six Member States registered an increase in their debt to GDP ratio at the end of the third quarter of 2016 and twenty two a decrease. The highest increases in the ratio were recorded in Cyprus (+3.1 pp), Portugal (+1.6 pp) and Lithuania (+1.1 pp). The largest decreases were recorded in Greece (-2.9 pp), Italy (-2.8 pp) and Austria (-2.3 pp).

Compared with the third quarter of 2015, eleven Member States registered an increase in their debt to GDP ratio at the end of the third quarter of 2016 and seventeen a decrease. The highest increases in the ratio were recorded in Greece (+4.4 pp), Lithuania (+3.1 pp), Portugal (+2.9 pp) and Bulgaria (+2.1 pp), while the largest decreases were recorded in Ireland (-8.5 pp), the Netherlands (-4.3 pp) and Hungary (-3.2 pp).