Analytics, Estonia, EU – Baltic States, Financial Services, GDP

According to Eurostat, Germany reduced its public sector debt to 81.2% of GDP in the first quarter. In the last quarter of 2012, the country’s debt burden was 81.9% of GDP.

Latvia's government debt to gross domestic product (GDP) ratio stood at 39.1% at the end of the first quarter of 2013 – the fifth lowest government debt across the European Union. Lithuania's government debt amounted to 40.8%, the seventh lowest in the EU.

The highest ratios of government debt to GDP were recorded in Greece – 160.5%, Italy – 130.3%, Portugal – 127.2%, and Ireland – 125.1%.

Compared with the fourth quarter of 2012, 21 member states registered increases in their debt to GDP ratio in the first quarter, while only six saw decreases. The steepest increase was registered in Ireland – 7.7%, followed by Belgium – 4.7%, and Spain – 4%.

The largest decrease was recorded in Latvia – 1.5%, Denmark – 0.8%, and Germany – 0.7%.

Compared to the respective period in 2012, the government debt to GDP ratio reduced only in three countries in the first quarter of 2013 – Latvia – 5.1%, Lithuania – 1.9%, and Denmark – 0.2%.

All other countries registered increases in their government debt to GDP ratios. Greece registered the largest increase – 24.1%, followed by Ireland – 18.3%.

At the end of the first quarter of 2013, the government debt to GDP ratio in the euro area stood at 92.2%, compared with 90.6% at the end of the fourth quarter of 2012. In the EU, the ratio was 85.9%, compared with 85.2% the previous quarter.

According to Eurostat, Latvia's national debt reached LVL 6.14 billion at the end of the first quarter of 2013.

Estonia reduced its debt burden from 10.1% of GDP to 10%. This is the lowest debt rate in Europe.