Greece Cuts Debt to 143.5% of GDP, Leading EU With 9.4-Point Drop
Updated
Updated · OIKONOMIA · Jul 21
Greece Cuts Debt to 143.5% of GDP, Leading EU With 9.4-Point Drop
2 articles · Updated · OIKONOMIA · Jul 21
Summary
Greece’s public debt fell to 143.5% of GDP in Q1 2026, down 9.4 percentage points from a year earlier—the biggest reduction among all 27 EU member states, Eurostat data showed.
The debt stock also shrank in absolute terms by more than €6 billion to €360 billion from €366 billion a year earlier, reinforcing the drop rather than relying only on GDP growth.
That improvement has narrowed Greece’s gap with Italy, whose debt stands at 138.9% of GDP; Greece still has the EU’s highest ratio, ahead of France at 117.6%, Belgium at 109.1% and Spain at 101.6%.
Over five years, Greece has cut its debt ratio by 69.4 points from a pandemic peak of 212.9%, while 19 EU countries saw debt ratios rise in Q1 and the EU average increased 1.5 points.
Greek officials say lower debt should reduce borrowing costs and bolster investor credibility, and they expect the country soon to lose its status as the EU’s most indebted member.
Is Greece's recovery a blueprint for other high-debt economies?
What hidden risks could derail Greece’s celebrated economic comeback?
Greece’s Debt-to-GDP Ratio Plummets: Fastest Reduction in EU, Economic and Social Implications (2024–2026)
Overview
Greece has made remarkable progress in reducing its public debt, achieving what its Minister of National Economy calls 'the fastest debt reduction in history.' This success is the result of a deliberate government choice to avoid passing the debt burden to future generations. Supported by strong fiscal discipline and a robust growth rate, Greece's public debt-to-GDP ratio, while still the highest in the EU at the end of 2025, is on a rapidly declining path. These achievements set the stage for potential credit rating upgrades and reflect a strong fiscal dynamic as the country enters 2026.