2023-04-24 12:02:10
In absolute value, the debt continued to increase, to 12,260 billion for the euro zone. Michael Kappeler/picture-alliance/dpa/AP Images
If indebtedness decreases thanks to inflation, deficits increase due to energy shields.
Deficits are growing, but the debt is shrinking. Behind this apparent anomaly, hides the effect of inflation on public finance statistics of the European Union, published Friday by the Eurostat Institute.
Average debt within the euro zone fell to 91.6% of GDP in the fourth quarter of 2022, compared to 95.5% a year earlier. This reduction in the rate would tend to show a reduction in the debts accumulated during the Covid crisis. This is only partly true. This is above all a drop in the ratio to GDP, which has increased due to the strong rebound in post-Covid activity but also, to a large extent, under the effect of a inflation at 9.2% for the year 2022. In absolute value, the debt continues to increase, to 12,260 billion for the euro zone. The rise in prices therefore mechanically reduces its weight in the economy.
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