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Croatia’s Debt Share in GDP Significantly Below European Average at the End of 2023

Croatian public debt expressed as a share of GDP was significantly lower than the eurozone and EU averages at the end of December 2023, according to data from the European Statistical Office released on Monday. In the 20-member eurozone, public debt as a share of GDP stood at 88.6 percent at the end of December, down by 1.3 percentage points from the end of September, Eurostat calculations show.

In the EU, it decreased by 0.7 percentage points to 81.7 percent of GDP. Compared to the end of 2022, it was lower by an average of two percentage points.

The share of debt in GDP decreased in both areas because GDP in absolute terms grew stronger than public debt.

At the end of last year, the gross general government debt amounted to 12.73 trillion euros in the eurozone and 13.86 trillion euros in the EU.

Croatia Again Alongside Germany

In approximately half of the EU member states, public debt expressed as a share of GDP was above the prescribed ceiling of 60 percent at the end of December, as was the case at the end of September. The highest was again in Greece, where it exceeded GDP by 61.1 percent. Italy follows with debt exceeding GDP by 37.3 percent. The group of countries with public debt slightly above GDP also includes France, Spain, and Belgium.

In Croatia, the consolidated general government debt at the end of December amounted to 48.19 billion euros, which was 290 million euros higher than at the end of September. Expressed as a share of GDP, it decreased at the end of December to 63.0 percent, down from 63.9 percent at the end of September, reflecting stronger economic growth. At the end of 2022, it amounted to 46.35 billion euros, which then corresponded to 67.8 percent of GDP.

Germany was closest to Croatia in terms of public debt share in GDP at the end of last year, with 63.6 percent. The lowest was again in Estonia, where it amounted to 19.6 percent. Bulgaria follows with public debt expressed as a share of GDP of 23.1 percent.

Jump in Bulgaria

At the end of December, the share of debt in GDP was lower in 17 EU countries than at the end of September, with the most significant decrease in Portugal, by 8.4 percentage points. Greece follows, where it was lower by 3.7 percentage points. Eurostat also highlights Slovenia, Belgium, Slovakia, and Spain with a decrease in the share of debt in GDP compared to the end of September ranging from 2.6 to 2.1 percentage points.

Croatia, with a public debt share in GDP lower by 0.8 percentage points than at the end of September, stands alongside Denmark and close to the EU average. However, it increased the most in Bulgaria, by 2.1 percentage points. Latvia follows with an increase in share compared to the end of September by 1.6 percentage points.

Expanded Group

At the end of December 2023, public debt expressed as a share of GDP was higher in nine EU countries than 12 months earlier. This expanded the group by one country. The most significant increase compared to the end of 2022 was in Finland, by 2.3 percentage points. Latvia follows, where it increased by 1.8 percentage points. The largest decreases were recorded in Portugal and Greece, by 13.3 and 10.8 percentage points, respectively. Cyprus follows, where it was lower by 8.3 percentage points.

Eurostat also highlights Croatia in the group with a debt share in GDP at the end of 2023 lower by 4.8 percentage points than at the end of 2022. Closest to Croatia is Spain, where it decreased by 4.0 percentage points, according to Eurostat data.

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