EU deficit to GDP and debt to GDP ratios fall

The euro area government deficit to GDP ratio fell from 2.1% in 2015 to 1.5% in 2016, and in the EU28 from 2.4% to 1.7%. The euro area GDP ratio fell from 89.9% (2015) to 88.9% (2016), and in the EU28 from 84.5% to 83.2%, according to EU statistics body Eurostat.

In 2016, Luxembourg (+1.6%), Malta and Sweden (both +1.1%), Germany (+0.8%), the Czech Republic (+0.7%), Greece and Cyprus (both +0.5%), the Netherlands (+0.4%) and Lithuania (+0.3%) registered a government surplus, while Latvia and Bulgaria reported a government balance.

The lowest government deficits as a percentage of GDP were recorded in Estonia (-0.3%), Denmark (-0.6%), Ireland (-0.7%) and Croatia (-0.9%). Three member states had deficits equal to or higher than 3% of GDP: Spain (-4.5%), France (-3.4%) and Romania (-3.0%). The UK reported a deficit to GDP ratio of -2.9.

Debt to GDP

At the end of 2016, the lowest ratios of government debt to GDP were recorded in Estonia (9.4%), Luxembourg (20.8%), Bulgaria (29.0%), the Czech Republic (36.8%), Romania (37.6%) and Denmark (37.7%).

Some 16 member states had government debt ratios higher than 60% of GDP, with the highest registered in Greece (180.8%), Italy (132.0%), Portugal (130.1%), Cyprus (107.1%) and Belgium (105.7%). The UK‘s debt to GDP ratio was 88.3%.

In 2016, government expenditure in the euro area was equivalent to 47.6% of GDP and government revenue to 46.1%. The figures for the EU28 were 46.3% and 44.7% respectively. In both zones, the government expenditure ratio decreased between 2015 and 2016, while the government revenue ratio decreased in the euro area and increased in the EU28.