Portugal has the 3rd highest public debt in Europe

In the third quarter of 2021, Portugal recorded a public debt ratio of 130.5 % of gross domestic product (GDP). As a result, Portugal ranks as the third country with the highest debt in the European Union. 

Portugal has the 3rd highest public debt in Europe

The information was published on Friday by Eurostatthe EU's statistical office. It reported that at the end of the third quarter of 2021, the public debt-to-GDP ratio in the eurozone was 97.7 %, compared with 98.3 % at the end of the second quarter of 2021. In the EU as a whole, the ratio also fell, from 90.9% to 90.1% over this period.

In the third quarter of last year, Portugal held on to third place in the ranking. public debt the highest in the EU, at 130.5 % of GDP, just behind Greece (200.7 %) and Italy (155.3 %).

Spain (121.8 %), France (116.0 %), Belgium (111.4 %) and Cyprus (109.6 %) are also on the list of Member States with the highest public debt-to-GDP ratios at the end of the third quarter of 2021. Conversely, the lowest ratios were recorded in Estonia (19.6%), Bulgaria (24.2%) and Luxembourg (25.3%).

Eurostat contextualizes, pointing out that while in the eurozone, the decrease in the ratio of public debt to GDP at the end of the third quarter was due to an increase in GDP, while debt continued to rise due to the financing needs of policy measures adopted to mitigate the economic and social impact of the pandemic."

Compared with the third quarter of 2020, the ratio of public debt to GDP increased in both the eurozone (from 96.6% to 97.7%) and the EU (from 89.2% to 90.1%).

Also in a yearly comparison, 15 member states recorded an increase in their debt-to-GDP ratio at the end of the third quarter of 2021 and 12 member states a decrease.