ECONOMY: Cyprus is the only EU state with a deficit above 3% of GDP

Cyprus had the highest deficit ratio in the EU last year at 4.8% of GDP and fourth widest government debt ratio at 102.5% of GDP.

Cyprus’ debt is estimated at Euros 21.258 bln (or 102.5% of GDP (20.73 bln), its government deficit is Euros -990 mln (or -4.8%), with revenues at 39.9% and expenditure at 44.7% of GDP

Meanwhile the overall debt in Greece is estimated at Euros 334.5 bln (181.1% of GDP (184.7 bln), the government budget surplus is Euros 1.99 bln (or 1.1%), revenues at 47.8% and expenditure at 46.7% of GDP.

In 2018, Luxembourg (+2.4%), Bulgaria and Malta (both +2.0%), Germany (+1.7%), the Netherlands (+1.5%), Greece (+1.1%), Czechia and Sweden (both +0.9%), Lithuania and Slovenia (both +0.7%), Denmark (+0.5%), Croatia (+0.2%) and Austria (+0.1%) registered a government surplus.

Ireland reported a government balance.

Two Member States had deficits equal to or higher than 3% of GDP: Romania (-3%) and Cyprus (-4.8%).

At the end of 2018, the lowest ratios of government debt to GDP were recorded in Estonia (8.4%), Luxembourg (21.4%), Bulgaria (22.6%), Czechia (32.7%), Denmark (34.1%) and Lithuania (34.2%). Fourteen Member States had government debt ratios higher than 60% of GDP, with the highest registered in Greece (181.1%), Italy (132.2%), Portugal (121.5%), Cyprus (102.5%), Belgium (102.0%), France (98.4%) and Spain (97.1%).

In 2018, the government deficit and debt of both the euro area (EA19) and the EU28 decreased in relative terms compared with 2017.

In the euro area the government deficit to GDP ratio fell from 1.0% in 2017 to 0.5% in 2018, and in the EU28 from 1.0% to 0.6%.

In the euro area the government debt to GDP ratio declined from 87.1% at the end of 2017 to 85.1% in 2018, and in the EU28 from 81.7% to 80.0%, according to Eurostat.

Government expenditure in the euro area was equivalent to 46.8% of GDP and government revenue to 46.3%. The figures for the EU28 were 45.6% and 45.0% respectively.

In both zones the government expenditure ratio decreased between 2017 and 2018, while the government revenue ratio increased.

Source: The Financial Mirror