The public debt of the general government in Croatia at the end of June amounted to 285.67 billion kuna, which is 1.72 billion kuna or 0.6% less than at the end of June last year, resulting in a decrease in the debt-to-GDP ratio from last year’s 87.1% to 84.6%, according to data released by Eurostat on Monday. This marks the second consecutive quarter in which public debt has decreased on a year-on-year basis, a trend not recorded since comparable data has been maintained – since the end of 1999.
In the first quarter of this year, the public debt ratio fell to 85.8%, while a year earlier it was 89.1%. Compared to the first quarter, when public debt amounted to 288.1 billion kuna, in the second quarter, Croatian public debt decreased by 2.4 billion kuna or 0.8%. This confirms the recently published data from the Croatian National Bank (HNB).
With a decrease in the public debt-to-GDP ratio of 2.5 percentage points year-on-year, Croatia ranks among the 15 EU countries that recorded a decline in debt. The largest decrease, by 13 percentage points, was observed in Ireland, followed by the Netherlands with a decrease of 3.3 points, and Hungary with 3.2 points.
On the other hand, the largest year-on-year increase in the public debt-to-GDP ratio was recorded in Greece, by 9.7 percentage points, followed by Latvia with 3.7 points, and Portugal with 2.9 points.
Croatia Among 15 EU Members with Declining Debt
With a decrease in the ratio in the second quarter of 1.2 percentage points compared to the previous quarter, Croatia found itself among the 15 EU countries that also recorded a reduction in debt on a quarterly basis. The largest decrease at this level was in Finland, by 2.7 percentage points, followed by Ireland with 2.6 points, and Hungary with 1.6 points. Conversely, the largest increase in the public debt-to-GDP ratio was in Greece, by 3.1 percentage points, followed by Portugal with 2.8 points, and Latvia with 2.6 points.
According to Eurostat data, in all 28 EU member states, the public debt-to-GDP ratio fell in the second quarter to 84.3%, down from 84.5% in the previous quarter. Year-on-year, the public debt-to-GDP ratio in the EU also decreased, as it was 87.5% at the end of June last year.
In the eurozone, the public debt-to-GDP ratio fell to 91.2% in the second quarter, down from 91.3% in the previous quarter. Year-on-year, this ratio decreased by 0.9 percentage points, as it was 92.1% at the end of June last year.
