Bulgaria Among EU Countries with Lowest Government Debt as Eurostat Reports Deficit Rise Across the Bloc

In 2023, Bulgaria maintained one of the lowest government debt-to-GDP ratios in the EU at 22.9%, as overall government deficits in the euro area and EU slightly increased. Government deficits rose to 3.6% of GDP in the euro area and 3.5% in the EU, while government debt levels fell across the region.

In 2023, the government deficit to GDP ratio increased slightly in both the euro area and the European Union (EU), according to Eurostat, the statistical office of the European Union. In the euro area, the ratio rose from 3.5% in 2022 to 3.6%, while in the EU it increased from 3.2% to 3.5%. However, government debt to GDP ratios saw a decline, with the euro area ratio falling from 89.5% at the end of 2022 to 87.4% at the end of 2023, and the EU ratio dropping from 82.5% to 80.8%.

This data, based on national reports from EU Member States in their second notification of 2024 for the excessive deficit procedure (EDP), covers the period from 2020 to 2023 and adheres to the ESA 2010 system of national accounts.

In 2023, most EU countries recorded deficits, except for Denmark (+3.3%), Cyprus (+2.0%), Ireland (+1.5%), and Portugal (+1.2%). The largest deficits were found in Italy (-7.2%), Hungary (-6.7%), and Romania (-6.5%), with ten Member States exceeding the 3% of GDP deficit threshold.

Government debt ratios varied widely across the EU at the end of 2023. The lowest ratios were in Estonia (20.2%), Bulgaria (22.9%), and Luxembourg (25.5%), while the highest were recorded in Greece (163.9%), Italy (134.8%), and France (109.9%). In total, 13 Member States had debt ratios exceeding 60% of GDP.

Government expenditure in the euro area for 2023 stood at 49.5% of GDP, with revenue at 45.9%, while in the EU, these figures were 49.0% and 45.5%,...