Nicosia: Debt reduction during the third quarter of 2025 in Cyprus has presented a contrasting trend to the general rise in the euro area, according to Eurostat. Gross general government debt in Cyprus amounted to 60.6% of GDP, marking a notable decrease of 0.7 percentage points compared with the previous quarter.
According to Cyprus News Agency, data released on Thursday by the European Statistical Office (Eurostat), the euro area experienced an increase in gross general government debt compared with the second quarter of 2025, standing at 88.2% of GDP. This trend was mirrored across all EU Member States, where debt increased from 81.9% to 82.1%.
When compared with the third quarter of 2024, sixteen member states saw an increase in their debt-to-GDP ratio by the end of the third quarter of 2025, while eleven member states, including Cyprus, recorded a decrease. Cyprus showcased one of the largest decreases at -6.1 percentage points, following Greece at -8.9 and Ireland at -7.1. On the other hand, countries like Romania (+5.5), Poland (+5.0), and Finland (+4.7) experienced the highest increases.
Overall, from the third quarter of 2024 to the third quarter of 2025, government debt as a percentage of GDP rose both in the euro area, from 87.7% to 88.5%, and in the EU, from 81.3% to 82.1%. At the end of the third quarter of 2025, the composition of general government debt in the euro area included 84.2% debt securities, 13.3% loans, and 2.6% currency and deposits. The EU showed a similar distribution with 83.6% in debt securities, 13.9% in loans, and 2.5% in currency and deposits.