The Czech Republic saw the most significant increase in debt among all European Union countries in the fourth quarter of last year, rising by 2.1 percentage points to 44.1% of GDP compared to the previous year, according to a report by the Eurostat statistical office. The country’s national debt also rose to a record-breaking CZK 2.99tn ($132.6bn). In contrast, EU debt fell by 4 percentage points to 84% of GDP.
The public finance deficit in the Czech Republic decreased to 3.6% of GDP in 2022 from 5.1% of GDP in 2021, according to Eurostat. Across the EU, the deficit fell to 3.4% of GDP from 4.8% in 2021.
In the eurozone, debt decreased by 3.9 percentage points to 91.6% of GDP at the end of last year. The public finance deficit in countries that use the euro also fell to 3.6% of GDP from 5.3% at the end of 2021.
Eurostat states, “In the eurozone and the EU, the decline in the debt-to-GDP ratio is due to higher GDP growth than the growth of national debt in absolute terms.” The national debt of the entire EU increased to over EUR 13.27tn ($15.67tn), while at the end of last September, it was just over EUR 13.20tn ($15.61tn).
Greece remains the most indebted country in the EU, with a debt-to-GDP ratio of 171.3% at the end of last year. Italy was the second most indebted country, with a debt-to-GDP ratio of 144.4%, followed by Portugal, where the ratio stood at 113.9% of GDP. Estonia had the lowest debt-to-GDP ratio, at 18.4%, followed by Bulgaria at 22.9% and Luxembourg at 24.6%.
The Czech Republic’s debt fell slightly from 45.1% of GDP in the third quarter to 44.1% in the fourth quarter. In a preliminary report in January of this year, Eurostat stated that debt in the Czech Republic reached 45.2% of GDP at the end of the third quarter.
In modern Czech history, the state’s debt was at its lowest between 1996 and 1998, reaching 9% of the GDP. Václav Klaus was prime minister at the time. From 1999 to 2013, debt increased steadily from 10% to 41% of GDP. At that time, the country was led by prime ministers like Milos Zeman and Petr Nečas.