Increasing Debt Levels in the Eurozone
According to data from the European Union’s statistical agency Eurostat, debt levels in the eurozone have increased in the first three months of this year. Eurostat reported that the 20 countries in the eurozone had a debt of 88.7% of GDP, compared to 88.2% in the previous quarter. However, there is some positive news as the eurozone deficit, the difference between government spending and revenue, decreased in the first quarter to 3.2% of GDP from 4%.
In France, whose debt status is carefully monitored due to political instability, the situation remains a concern. Despite efforts to reduce deficits, the overall debt levels in the eurozone continue to rise, posing a challenge for economic stability in the region.
Greek Debt Levels Remain High in Eurozone
Following the announcement of early elections by President Emmanuel Macron, Greece’s debt levels increased by 0.9 percentage points of GDP compared to the previous quarter. Greece continues to be the most indebted country in the Eurozone, with a total debt of almost 160% of GDP. However, it is also the country that is fastest at reducing its debt, with a decrease of 2.1 percentage points compared to the fourth quarter of 2023.
After Greece, the highest ratios of national debt to GDP at the end of the first quarter of 2024 were recorded by Italy (137.7%), France (110.8%), and Spain (108.9%).
The Debt Levels in European Countries
In Western Europe, Belgium has seen the fastest growth in debt compared to its economy, with an increase of 3.1 percentage points during the quarter. On the other hand, Bulgaria, Estonia, and Luxembourg have the lowest debt levels in the region.
Belgium and Portugal have the highest debt levels in Western Europe, while Bulgaria, Estonia, and Luxembourg have the lowest. Belgium experienced the fastest growth in debt relative to its economy, with an increase of 3.1 percentage points during the quarter.