In the European Union (EU), the ratio also fell from 83.4 per cent to 83.1 per cent in the quarter.

The fall in both the regions was because an increase in GDP in absolute terms outweighed the increase in government debt, an official release noted.

Compared with Q2 2022, the ratio also decreased in both the euro area (from 93.5 per cent to 90.3 per cent) and the EU (from 85.9 per cent to 83.1 per cent).

At the end of Q2 2023, debt securities accounted for 83.4 per cent of euro area debt and for 82.9 per cent of EU general government debt. Loans made up 13.8 per cent and 14.3 per cent respectively and currency and deposits represented 2.8 per cent of euro area and 2.7 per cent of EU government debt.

Intergovernmental lending (IGL) as a percentage of GDP at the end of Q2 2023 stood at 1.6 per cent in the euro area and for 1.3 per cent in the EU.

Compared with Q1 2023, nine EU member states saw increases in this ratio at the end of Q2 2023 and 18 recorded falls.

The largest increases in the ratio were observed in Cyprus, Slovakia, Italy, Finland and Estonia, while the largest decreases were recorded in Latvia, Croatia, Portugal, Greece, Malta, Austria, Slovenia, the Netherlands, Germany and Sweden.

Compared with Q2 2022, six EU member states registered increases in this ratio at the end of Q2 2023, whereas 21 saw decreases.

Increases were recorded in Luxembourg, Finland, Estonia, Czechia, Slovakia and Bulgaria, while the largest decreases were observed in Greece, Portugal, Cyprus, Ireland, Croatia, Slovenia, Austria and Italy, Spain and the Netherlands.

Fibre2Fashion News Desk (DS)