Cyprus’ debt-to-GDP ratio drops to 109% in Q2 2016

Cyprus’ debt-to-GDP ratio has dropped further by -0.3% to reach 109% in the second quarter of 2016 according to Eurostat.

The difference compared to the same period of 2015 is -1.8%.

In absolute terms, the public debt deescalated from 19.266 billion in Q2 2015 to 19.046 billion in Q1 2016 and further to 19.044 billion in Q2 2016 and from 110.7% to 109.3% and 109.0% respectively. Its basic components have been debt securities (33.7%) and loans (75.2%).

Meanwhile, at the end of the second quarter of 2016, the government debt to GDP ratio in the euro area (EA19) stood at 91.2%, compared with 91.3% at the end of the first quarter of 2016. In the EU28, the ratio decreased from 84.5% to 84.3%. Compared with the second quarter of 2015, the government debt to GDP ratio fell in both the euro area (from 92.1% to 91.2%) and the EU28 (from 87.5% to 84.3%). At the end of the second quarter of 2016, debt securities accounted for 79.5% of euro area and for 81.0% of EU28 general government debt. Loans made up 17.5% and 15.2% respectively and currency and deposits represented 2.9% of euro area and 3.9% of EU28 government debt.

The highest ratios of government debt to GDP at the end of the second quarter of 2016 were recorded in Greece (179.2%), Italy (135.5%) and Portugal (131.7%), and the lowest in Estonia (9.7%), Luxembourg (22.0%) and Bulgaria (29.4%).

Compared with the first quarter of 2016, thirteen Member States registered an increase in their debt to GDP ratio at the end of the second quarter of 2016 and fifteen a decrease. The highest increases in the ratio were recorded in Greece (+3.1%), Portugal (+2.8%) and Latvia (+2.6%). The largest decreases were recorded in Finland (-2.7%), Ireland (-2.6%) and Hungary (-1.6%).

Compared with the second quarter of 2015, thirteen Member States registered an increase in their debt to GDP ratio at the end of the second quarter of 2016 and fifteen a decrease. The highest increases in the ratio were recorded in Greece (+9.7%), Latvia (+3.7%), Portugal (+2.9%), Poland (+2.7%) and Lithuania (+2.6%), while the largest decreases were recorded in Ireland (-13.0%), the Netherlands (-3.3%) and Hungary (-3.2%).

Source: InCyprus