The public debt in the Eurozone has slightly decreased in the first quarter of 2023. The debt-to-GDP ratio decreased to 91.2% from 91.4% in the previous quarter. The highest debt ratios were recorded in Greece (168.3%), Italy (143.5%), Portugal (113.8%), Spain (112.8%), France (112.4%), and Belgium (107.4%). The lowest ratios were in Estonia (17.2%), Bulgaria (22.5%), Luxembourg (28.0%), and Denmark (29.4%). Germany's ratio was in the middle (65.9%)
289 sats \ 3 replies \ @Undisciplined 21 Jul 2023
Did the actual debt level decrease or just the ratio?
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21 sats \ 2 replies \ @TomK OP 21 Jul 2023
The absolute level is rising slightly. Wait for public tax income to implode. Germany had minus 7.3% in June compared to 2022
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0 sats \ 1 reply \ @Undisciplined 21 Jul 2023
That's really interesting. What's driving that? Is it Germany specific or will we see that throughout the EU?
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21 sats \ 0 replies \ @TomK OP 21 Jul 2023
Germany with its attack on their own energy and auto sector is really a special case. But the south won't be able to handle this recession because of the euro and high debt levels. A big crisis is coming to the Eurozone. Watch credit spreads between german 10y Bund and US 10Y. When the premium disappears You know it's over for them.
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0 sats \ 7 replies \ @premitive1 22 Jul 2023
"The public debt in the Eurozone has slightly decreased"
That seems like doublespeak. Why would you write that here? The debt to GDP ratio slightly decreased, but the debt increased.
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0 sats \ 6 replies \ @TomK OP 22 Jul 2023
It's because the GDP grew nominally
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0 sats \ 5 replies \ @premitive1 22 Jul 2023
public debt is not a ratio of public debt to GDP. that's self referential. public debt is some nebulous discreet amount of euros owed to creditors by the public.
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0 sats \ 4 replies \ @TomK OP 22 Jul 2023
I always put public debt in relation to the GDP to make it comparable to other states. I guess, 99.9% of economists would be d'accord. But of course I know that the GDP measure like inflation is manipulated.
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0 sats \ 3 replies \ @premitive1 22 Jul 2023
You do not write to a room of economists, therefore to write in jargon misses your audience, both in intent and in perception.
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0 sats \ 2 replies \ @TomK OP 22 Jul 2023
Ok. Tell me, where I should elaborate on somewhat deeper? I would like to make my point on public debt clear because it will be important later on in the credit cycle.
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0 sats \ 1 reply \ @premitive1 22 Jul 2023
In colloquial english the phrase "public debt" refers to the amount of nominal debt owed by a government, and NOT the ratio of nominal debt to whatever GDP is.
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0 sats \ 0 replies \ @TomK OP 22 Jul 2023
Correct. And now You put this number in relation to the nominal GDP and repeat this with a number of other countries and over a defined time period to get a reverence point like an anchor. Therefore it's possible that public debt (nominal) rises meanwhile because of econ growth the ratio of pd/gdp falls.
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0 sats \ 0 replies \ @TomK OP 21 Jul 2023
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