Gross general government debt fell to 86,5% of GDP in Cyprus at the end of the fourth quarter of 2022, compared to the third quarter of 2022, when it stood at 91,3%, registering the second largest reduction in the EU, according to data released by Eurostat, the statistical agency of the European Union.
In the eurozone in the fourth quarter of 2022 the debt-to-GDP ratio decreased to 91,6% compared to 93,0% last quarter, while in the EU it decreased from 85,1% to 84,0%.
According to Eurostat, the decrease for both the Eurozone and the EU, the decrease is due to the increase in GDP which offset the increase in government debt in absolute terms.
A decrease was also recorded in relation to the fourth quarter of 2021, in Cyprus (from 101,2% to 86,5%), the Eurozone (from 95,5% to 91,6%) and the EU (from 88,0% to 84,0%).
At the end of the fourth quarter of 2022, securities accounted for 82,5% of general government debt in the euro area and 81,9% in the EU. Loans accounted for 14,5% and 15,1% in the euro area and the EU respectively , while foreign exchange and deposits accounted for 3,0% in the euro area and 2,9% in the EU.
Data on the composition of general government debt by Member State are recorded only as ratios of general GDP. In Cyprus, foreign exchange and deposits account for 0,6% of GDP (compared to 2,7% in the Eurozone and 2,5% in the EU), bonds account for 54,0% (compared to 75,6% and 68,8%) and loans account for 32,0% (compared to 13,3% and 12,7%).
Eurostat also publishes quarterly figures on intergovernmental borrowing (IGBT) due to Member States' involvement in lending to some Member States. As reported, in the fourth quarter of 2022, the ratio of GNI in relation to GDP corresponded to 1,6% in the Eurozone and 1,4% in the EU. This ratio for Cyprus was 1,2%.
The highest government debt-to-GDP ratios at the end of the fourth quarter were recorded in Greece (171,3%), Italy (144,4%), Portugal (113,9%), Spain (113,2 %), France (111,6%) and Belgium (105,1%) and the lowest in Estonia (18,4%), Bulgaria (22,9%) and Luxembourg (24,6%).
Compared to the third quarter of 2022, seven Member States recorded an increase in their debt-to-GDP ratio at the end of the fourth quarter of 2022, while 19 recorded a decrease. The ratio remained stable in Luxembourg.
The largest increases were seen in Estonia (+2,5 percentage points – p.p.), the Netherlands (+2,0 p.p.), Lithuania and Finland (+1,1 p.p. both), while the largest decreases were recorded in Portugal (-5,9 p.m.), Cyprus (-4,8 p.m.), Greece (-4,5 p.m.), Ireland (-4,4 p.m.) and Austria (-3,0 p.m.).
Compared to the fourth quarter of 2021, four Member States recorded an increase in their debt-to-GDP ratio and 23 Member States recorded a decrease.
Increases were recorded in the Czech Republic (+2,1 p.m.), Estonia (+0,8 p.m.), Finland (+0,4 p.m.) and Luxembourg (+0,1 p.m.), while the largest decreases were recorded in Greece ( -23,3 pm), Cyprus (-14,7 pm), Portugal (-11,5 pm), Ireland (-10,7 pm), Croatia (-10,0 pm), Denmark ( -6,6 p.m.), Italy (-5,5 p.m.), Lithuania (-5,3 p.m.) and Spain (-5,0 p.m.).
Source: KYPE