Govt deficit 3.1% of GDP in euro area in 2024, 3.2% in EU: Eurostat

In the euro area, the government debt to GDP ratio slightly increased from 87.3 per cent at the end of 2023 to 87.4 per cent at the end of 2024 (it was 88.1 per cent at the end of the third quarter [Q3] of 2024), and in the EU from 80.8 per cent to 81 per cent (it was 81.6 per cent at the end of Q3 2024).

In 2024, all member states, except Denmark (plus 4.5 per cent), Ireland and Cyprus (both plus 4.3 per cent), Greece (plus 1.3 per cent), Luxembourg (plus 1 per cent) and Portugal (plus 0.7 per cent), reported a deficit.

The highest deficits were recorded in Romania (minus 9.3 per cent), Poland (minus 6.6 per cent), France (minus 5.8 per cent) and Slovakia (minus 5.3 per cent). Twelve member states had deficits equal to or higher than 3 per cent of GDP.

At the end of 2024, the lowest ratios of government debt to GDP were recorded in Estonia (23.6 per cent), Bulgaria (24.1 per cent), Luxembourg (26.3 per cent), Denmark (31.1 per cent), Sweden (33.5 per cent) and Lithuania (38.2 per cent).

Twelve member states had government debt ratios higher than 60 per cent of GDP, with the highest registered in Greece (153.6 per cent), Italy (135.3 per cent), France (113 per cent), Belgium (104.7 per cent) and Spain (101.8 per cent), an Eurostat release said.

In 2024, government expenditure in the euro area was 49.6 per cent of GDP and government revenue was 46.5 per cent. The figures for the EU were 49.2 per cent and 46 per cent respectively. Government revenue and expenditure ratios increased last year both in the euro area and the EU compared to 2023.

ALCHEMPro News Desk (DS)