In Latvia, as of the end of June this year, the public debt per capita amounted to €10,600, according to data released by the Fiscal Discipline Council (FDC), writes LETA.
When calculating public debt per capita, the highest figure in Europe is recorded in Belgium — €56,400, while the lowest is in Bulgaria and Estonia: €4,400 and €6,900, respectively, notes the Fiscal Discipline Council (FDC).
Latvia still ranks among the countries with a relatively low level of public debt — 48% of gross domestic product (GDP), while adhering to the Maastricht criterion, which stipulates a debt limit below 60% of GDP, emphasizes the FDC.
For 2025, debt is projected to rise to 49% of GDP, with a more rapid increase expected in subsequent years: in 2026 — to 51%, and in 2027 and 2028 — to 55% of GDP.
The FDC also indicates that the share of debt servicing costs relative to GDP will continue to grow. For 2025, interest payments are planned at €519 million, or 1.2% of GDP, in 2026 — €617 million, or 1.4% of GDP. From 2027 to 2028, interest expenses in the state budget will amount to 1.5% of GDP, while in nominal terms they will continue to rise — to €700 million in 2027 and to €736 million in 2028.
Among European countries, the highest level of debt relative to GDP is recorded in Greece (151.2%), while the lowest is in Estonia (23.2%).
The FDC explains that in seven out of 15 countries with low public debt (less than 60% of GDP), the volume of debt has decreased compared to the second quarter of 2024. The largest decrease was recorded in Ireland — by 7.2 percentage points, and in Denmark — by 3.4 percentage points. On average, in these seven countries, debt decreased by 2.1 percentage points in the second quarter.
Meanwhile, in the other eight countries with low debt, it increased — on average by 3.1 percentage points.
In countries with high levels of debt (a total of 13), the volume decreased in five countries — on average by 3.9 percentage points. The largest decrease was recorded in Greece — by 8.9 percentage points, and in Cyprus — by 6.5 percentage points. However, in eight countries with high levels of debt, the figure increased on average by 2.4 percentage points, including in Finland — by 7.8 percentage points, in France — by 3.5, in Slovakia — by 2.7, and in Italy — by 2.3 percentage points.
