The government debt to GDP ratio decreased in the EU and euro area at the end of the Q3 of 2022 on the back of continued economic growth and Croatia retained its place among the member states with the biggest decrease, according to a Eurostat report.

The government debt to GDP ratio in the EU decreased last September to 85.1% of GDP from 86.4% in June in the EU and to 93% in the euro area from 94.2% quarter-on-quarter.

At the end of September 2021, it amounted to 89.7% in the EU and it reached almost 100% of GDP in the eurozone.

The highest ratio of government debt to GDP at the end of the third quarter of 2022 was recorded in Greece (178.2%).

It was followed by Italy (147.3%), Portugal (120.1%), Spain (115.6%), France (113.4%) and Belgium (106.3%).

In Croatia the consolidated general government debt to GDP ratio at the end of September 2022 stood at €45.689 billion, which is 70.4% of GDP, Eurostat reported noting that this amount is based on the official euro changeover exchange rate (7.53450).

At the end of June 2022, Croatia’s government debt was €45.636 billion or 73.2% of GDP while at the end of September 2021, it was €45.856 billion (81.5%). Finland (70.8%) and Slovenia (72.3%) registered figures closest to Croatia.

The lowest ratios of government debt to GDP were registered in Estonia (15.8%), Bulgaria (23.1%) and Luxembourg (24.6%).

Compared with the second quarter of 2022, four EU member states registered an increase in their debt to GDP ratio at the end of the third quarter of 2022 and twenty-three a decrease. Increases in the ratio were observed in Bulgaria (+1.9 percentage points – pp), the Czech Republic (+1.7 pp), France (+0.3 pp) and Sweden (+0.2 pp).

The largest decreases were recorded in Greece (-5.3 pp), Cyprus (-3.8 pp), Portugal (-3.3 pp), Italy (-3.0 pp) and Croatia (-2.8 pp).

Compared with the third quarter of 2021, one Member State registered an increase in its debt-to-GDP ratio at the end of the third quarter of 2022 and twenty-six Member States a decrease. The increase in the ratio was recorded in Czech Republic (+4.7 pp).

The largest decreases were observed in Greece (-24.7 pp), Cyprus (-15.0 pp), Croatia (-11.1 pp), Portugal (-9.0 pp), Denmark (-8.8 pp), Ireland (-8.4 pp), Lithuania (-7.3 pp) and Slovenia (-7.2 pp).