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Dublin: 9 °C Sunday 21 December, 2014

Good news! Eurozone governments are paying off their debts

Eurostat says the decline in government debt is the first since 2007.

Image: Euro notes via Shutterstock

DEBT HELD BY Eurozone governments has fallen for the first time since 2007.

Data released by the EU statistics office Eurostat shows that the third quarter on 2013 saw a drop of 0.7 per cent in terms of debt-to-GDP.

In quarter two of last year, it had stood at €8.875 trillion, 93.4 per cent of GDP. In quarter two, that was down €8.842 trillion, 92.7 per cent.

The improvement was felt across most of Europe, with Ireland’s ratio dropping from 125.4 per cent to 124.8 per cent. This is despite the value of Ireland’s debt climbing to €204.6 billion.

Germany’s debt fell to 78.4 per cent of GDP. Estonia, which is currently experiencing an economic boom, has a debt to GDP ratio of just 10 per cent.

Bailout nations Greece and Portugal hold ratios of 171.8 per cent and 128.7 per cent respectively, while Italy held a 132.9 per cent ratio.

Across the EU, however, public debt climbed by 0.1 per cent.

Eurostat says that the overall decline is the first since 2007.

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