Compared with the fourth quarter of 2018, the government debt to GDP ratio fell in both the euro area (from 85.8% to 84.1%) and the EU27 (from 79.6% to 77.8%). In Cyprus and Greece Debt to GDP decreased from 100.6 to 95.5% and 181.2% to 176.6% respectively, or by -5.1 and -4.6 points.

The highest ratios of government debt to GDP at the end of the fourth quarter of 2019 were recorded in Greece (176.6%), Italy (134.8%) and Portugal (117.7%) and the lowest in Estonia (8.4%), Bulgaria (20.4%) and Luxembourg (22.1%).

Compared with the third quarter of 2019, three Member States registered an increase in their debt to GDP ratio at the end of the fourth quarter of 2019 and twenty-four a decrease. Increases in the ratio were observed in Luxembourg (+2.0 percentage points – pp), Lithuania (+0.6 pp) and Romania (+0.1 pp). The largest decreases were recorded in Ireland (-3.7 pp), Belgium (-3.4 pp), Portugal (-2.4 pp), Italy and Cyprus (both -2.3 pp), Spain, France and Slovenia (all -2.0 pp).

Compared with the fourth quarter of 2018, four Member States registered an increase in their debt to GDP ratio at the end of the fourth quarter of 2019 and twenty-one a decrease, while in France and Italy the ratio remained stable. The largest increases in the ratio were recorded in Lithuania (+2.4 pp) and Luxembourg (+1.1 pp), while the largest decreases were recorded in Cyprus (-5.1 pp), Ireland (-4.8 pp), Greece (-4.6 pp), Portugal and Slovenia (both -4.3 pp).

In the fourth quarter of 2019, the seasonally adjusted general government deficit to GDP ratio stood at 0.7% in both the euro area (EA19) and the EU27, both unchanged compared with the third quarter of 2019.

In the fourth quarter of 2019, total government revenue in the euro area amounted to 46.4% of GDP, a decrease compared with 46.6% of GDP in the third quarter of 2019. Total government expenditure in the euro area stood at 47.1% of GDP, a decrease compared with 47.3% in the previous quarter. In the EU27, total government revenue was 46.1% of GDP in the fourth quarter of 2019, a decrease compared to 46.2% of GDP in the third quarter of 2019. Total government expenditure in the EU27 was 46.7% of GDP, a decrease compared with 46.9% of GDP in the previous quarter.

Source: CNA

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