European countries’ government debt declines in 2016

October 23, 2017 12:01 pmComments Off on European countries’ government debt declines in 2016Views: 374

government debtThe government debt for the Eurozone and the European Union (EU) as a whole declines on an annual basis in 2016. The debt-to-GDP ratio in the single currency area fell from 89.9% at the end of 2015 to 88.9% at the end of last year, while in the EU decrease is from 84.5% to 83.2%.

The EU’s statistical agency includes data on government deficits, and it is also declining for both regions. The Eurozone’s government deficit ratio is down from 2.1% in 2015 to 1.5% in 2016 and in the EU from 2.4% to 1.7%.

In 2016, there are several countries that achieve a budget surplus – Luxembourg (+1.6%), Malta and Sweden (+1.1%), Germany (+0.8%) Greece and Cyprus (+0.5%). Latvia and Bulgaria are the only two countries in the EU to achieve a balance.

The lowest government deficits as a percentage of GDP were reported in Estonia (-0.3%), Denmark (-0.6%), Ireland (-0.7%) and Croatia (-0.9%). Three countries report deficits equal to or above 3%, which is considered as target from the Maastricht agreement – Spain (-4.5%), France (-3.4%) and Romania (-3%).

The countries with the lowest debt-to-GDP ratio for 2016 are Estonia (9.4%) and Luxembourg (20.8%), followed by Bulgaria (29%), Czech Republic (36.8%), Romania (37.6%) and Denmark (37.7%). The highest ratio remains in Greece (180.8%), followed by Italy (132%), Portugal (130.1%), Cyprus (107.1%) and Belgium (105.7%).

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