Forex »

EUR Eurozone Public Debt Continues Trend Higher

James Boston
Share on StockTwits
Published on
www.finances.com
EUR Eurozone Public Debt Continues Trend Higher

Eurostat have just published an interesting report into the overall Public Debt and Public Deficit figures for the both the EU and the Eurozone. The comprehensive report covers the period 2010 to 2013 which provides good trend insight but the real focus is on the change from the 2012 to 2013 period. During this period the Public Debt to GDP of the combined Eurozone countries rose from 89.0% to 90.9%, the overall EU Debt to GDP number increased from 83.5% to 85.4%. Greece leads the way in terms of Debt to GDP burden, this was 174.9% at the end of 2013, Portugal, Italy and Ireland all carry debt levels between 120% and 130%. The country with the lowest Debt to GDP level was Estonia at 10.1% closely followed by Bulgaria at 18.3%.

On a Deficit to GDP basis the report is presenting a much more favourable picture. Here the Eurozone countries have shown a deficit decrease from 3.6% of GDP to just 2.9%, this figure was 6.1% in 2010. Undoubtedly this will final reading below the 3% target level will be very welcome, particularly when it is considered that two of the Eurozone’s top four economies, France and Spain, have consistently exceeded this 3% threshold, they posted 2013 figures of 4.1% and 6.8% respectively. The bloc’s largest economy, Germany, in some way made up for the deficits elsewhere by posting a moderate surplus of 0.1% in 2013, the only other country in surplus was Luxembourg which recorded a surplus of 0.6%. The wider 28 country EU bloc has produced a combined deficit of 3.2%, down from 4.2% in 2012 and 6.4% in 2010. Ten of the EU 28 countries are not bound by the 3% deficit target which may in some way go to explain the higher reading in the wider EU bloc.

Share on StockTwits