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Cyprus Government debt reached 67.5% in Q3 2011

Government debt in Cyprus increased to 67.5% of the Island’s GDP at the end of the third quarter of 2011 according to a press release issued yesterday by Eurostat, the Statistical Office of the EU.

ACCORDING to a Eurostat news release, the Cyprus debt to Gross Domestic Product (GDP) ratio reached 67.5% in the third quarter of 2011, compared with 59.9% in the same quarter of 2010; an increase of 7.6%.

Greece’s government debt reached 159.1% of GDP, having increased by 20.3%. Portugal’s government debt went up by 18.9% and reached 110.1% of GDP, while Ireland’s debt reached 104.9%.

The United Kingdom’s government debt was reported to have reached 85.2% of GDP in Q3 2011; an increase of 6.9% compared with the same quarter of 2010.

Eurostat figures show that the highest ratios of government debt to GDP at the end of the third quarter of 2011 were recorded in Greece (159.1%), Italy (119.6%), Portugal (110.1%) and Ireland (104.9%).

The lowest were recorded in Estonia (6.1%), Bulgaria (15.0%) and Luxembourg (18.5%).

Furthermore, the highest increases in the ratio were recorded in Hungary (+4.8 percentage points – pp), Greece (+4.4 pp) and Portugal (+3.6 pp).

The largest decreases in the ratio were recorded in Italy and Malta (both -1.6 pp) and Romania (-1.0 pp).

On the other hand, compared with the third quarter of 2010, the highest increases in the ratio were recorded in Greece (+20.3 pp), Portugal (+18.9 pp) and Ireland (+16.5 pp), while largest decreases were recorded in Sweden (-1.6 pp), Luxembourg (-1.4 pp) and Bulgaria (-0.9 pp).

Further reading

Eurostat newsrelease euroindicators 20/2012 – 6 February 2012

Readers' comments

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  • Mike says:

    Exactly right Jon and is the reason why I am an advocate of the UK government not needing to slash its deficit so draconianly over the next couple of years as some of the debt has another 14 years to maturity. However it is a good excuse to cut public spending and pursue political ideology rather than sound fiscal policies. (Much like Cyprus).

    I would much rather both economies put as much effort into combating tax avoidance, public works contracts and the lack of forethought in securing public contracts as they put into rhetoric. I would think both administrations would solve their deficits overnight – well, perhaps not Cyprus’ as any saving would probably be squandered again.

  • jon frazer says:

    Mike, the main factor is the length of the maturity of the debt, the UK having some of the longest maturity in Europe. I understand this is one of the main reasons why the UK is still rated AAA, and a fact which cannot readily be massaged.

  • Mike says:

    Ian

    UK debt is far greater than Cyprus’ and UK personal debt is probably greater than any other EU states. I stand to be corrected but I think UK debt currently stands at around 86%. My personal guesstimate is total debt of around 98%. As you infer however there are numerous creative accounting systems to facilitate any summary you wish to portray.

  • Ian says:

    So, on the surface it looks like the UK Debt ratio is worse than Cyprus !!!

    Saw figures last year indicating that Cyprus’ GDP/Debt ration was around the level of Greece at the time (if memory serves, about 116%).

    A little more massaging, or is GDP now measured in Roubles !

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