Bulgaria Leads EU with Lowest Government Debt-to-GDP Ratio in Q1 2025, Eurostat Reports
Brussels, The Gulf Observer: Bulgaria continues to hold the top position in the European Union for maintaining the lowest government debt relative to gross domestic product (GDP), according to the latest data released by Eurostat. As of the end of the first quarter of 2025, Bulgaria’s debt-to-GDP ratio stood at just 23.9%, reaffirming its status as a model of fiscal discipline among EU member states.
Estonia follows closely with a debt ratio of 24.1%, while Luxembourg and Denmark report 26.1% and 29.9%, respectively. These figures highlight the sharp divide between fiscally conservative countries and those burdened with significantly higher debt levels.
In contrast to Bulgaria’s performance, the EU average government debt-to-GDP ratio rose to 81.8% in the first quarter of 2025, compared to 81% in the previous quarter. The euro area saw a steeper increase, reaching 88%, up from 87.4% at the end of 2024.
Greece remains the most indebted country in the bloc, with a staggering 152.5% debt-to-GDP ratio, followed by Italy (137.9%), France (114.1%), Belgium (106.8%), and Spain (103.5%).
Eurostat’s data also revealed the structure of EU government debt: 83.6% is held in the form of securities, 13.9% as loans, and 2.5% in currency and deposits. In the eurozone, the distribution is slightly more weighted toward securities at 84.2%, with loans at 13.3% and currency and deposits at 2.6%.
During the first quarter, 16 EU member states saw an increase in their debt-to-GDP ratios, while 10 reported declines. Notably, Bulgaria was among the few to register an improvement, with its ratio dropping by 0.2 percentage points from the previous quarter. However, in a year-on-year comparison, Bulgaria’s ratio rose by 1.5 percentage points compared to the same period in 2024.
Despite the minor annual uptick, Bulgaria’s consistently low debt burden underscores its reputation for prudent and conservative fiscal policy. Eurostat’s latest figures reaffirm Bulgaria’s standing as one of the most financially disciplined countries in the European Union.
