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EU debt levels up in 2018 but debt-to-GDP ratio down

Rising economic activity in the European Union helped to push the region's debt-to-GDP ratio down despite an increase in real debt levels
Rising economic activity in the European Union helped to push the region's debt-to-GDP ratio down despite an increase in real debt levels

Government debt levels rose in the European Union last year, according to Eurostat, but economic expansion in the region pushed the overall debt-to-GDP ratio down.

The countries that use the euro had a combined debt of €9.86 trillion in 2018, up €99 billion (1%) year-on-year. Meanwhile, in the wider European Union, debt levels rose €135.5 billion (1.1%) to €12.7 trillion.

However rising activity meant that debt made up a smaller portion of the region's economic value.

The EU's debt-to-GDP ratio stood at 80% last year, down from 81.7% in 2017. In the euro area the ratio was 85.1%, down two percentage points year-on-year.

According to Eurostat the EU member state with the lowest debt-to-GDP ratio last year was Estonia at 8.4%. The highest was recorded in Greece, which saw its ratio rise almost five percentage points to 181.1%.

Last year Ireland's national debt rose by almost €5 billion to €206.2 billion, however the country's debt-to-GDP ratio fell 3.7 percentage points to 64.8%.

Eurostat said that 13 countries reported a budget surplus last year, while Ireland reported a balanced budget.