Belgium’s Public Debt Rises To 106.8% Of GDP In Q1 2025

Photo: WAM

Belgium’s public debt has grown to 106.8 percent of its gross domestic product (GDP) in the first quarter of 2025. This news was shared on Tuesday by Eurostat, which is the official statistics office for the European Union. But what does this really mean, and why is public debt important for a country like Belgium?

What Is Public Debt And Why Does It Matter?

Public debt is the total amount of money that a government owes to others. This debt can come from taking loans from banks, other countries, or even from its own people through bonds. Governments often borrow money to build roads, pay salaries, run schools, and provide healthcare. If public debt becomes too high, it can cause problems for a country’s economy in the future because the government will have to spend a lot of its money just to pay back these loans with interest.

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How Does Belgium Compare With Other Countries?

Belgium is not the only country with high public debt. According to the latest data from Eurostat, Greece has the highest public debt among European Union countries. Greece’s public debt is 152.5 percent of its GDP. This means that Greece owes more than one and a half times the value of everything it produces in a year.

After Greece, Italy has the second highest debt with 137.9 percent of its GDP. France is third with 114.1 percent. Belgium comes next with its debt at 106.8 percent of its GDP.

What Is The Average Debt In The Eurozone And EU?

If we look at the average debt levels for all countries using the euro as their currency, called the eurozone, the public debt ratio is 88 percent. For the entire European Union, which includes countries that do not use the euro, the average public debt is slightly lower at 81.8 percent.

This shows that Belgium’s public debt is much higher than both the eurozone and European Union averages. Having such a high debt can be risky because if there is an economic problem or recession in the future, it will be harder for Belgium to manage its finances and borrow more money if needed.

How Has Debt Changed Since Last Year?

Eurostat’s report also shows how public debt has changed compared to the first quarter of 2024. Thirteen countries in the European Union saw an increase in their debt-to-GDP ratios in the first quarter of 2025. This means their debt grew faster than their economies.

On the other hand, twelve countries managed to reduce their debt-to-GDP ratios, which is a positive sign for them as it means their economies are growing faster or they are repaying their debts. In Slovenia and Estonia, there was no change in the debt-to-GDP ratio.

Countries With The Biggest Debt Increases

Here are the countries that saw the largest increases in their public debt:

• Poland had the biggest rise with its debt increasing by 6.1 percentage points.

• Finland saw its debt go up by 5.1 percentage points.

• Austria and Romania both recorded increases of 4.1 percentage points each.

• France’s debt rose by 3.6 percentage points.

• Italy’s debt increased by 2.9 percentage points.

• Slovakia recorded an increase of 2.6 percentage points.

• Sweden saw its debt go up by 2.0 percentage points.

This shows that several countries are struggling to keep their debts under control. Rising debts can become a burden on future generations because they will have to pay higher taxes or face fewer government services to pay back these loans.

Countries With The Biggest Debt Decreases

However, some countries did very well in reducing their public debts. Here are the countries with the largest decreases:

• Greece, which has the highest debt in Europe, managed to reduce its debt by 9.3 percentage points. This is a very big improvement for Greece.

• Cyprus reduced its debt by 8.2 percentage points.

• Ireland saw its debt fall by 6.1 percentage points.

• Croatia’s debt went down by 3.6 percentage points.

• Denmark recorded a decrease of 3.2 percentage points.

• Spain’s debt decreased by 2.8 percentage points.

• Portugal managed to lower its debt by 2.7 percentage points.

These countries have either increased their economic output or repaid some of their debts, which has helped them bring down their debt-to-GDP ratios.

How Much Did Belgium’s Debt Increase?

In Belgium, the public debt-to-GDP ratio increased slightly by 0.2 percentage points over the year. While this is not a big jump compared to other countries like Poland or Finland, it is still an increase, and it means Belgium’s debt problem is not getting better.

Why Is Managing Debt Important For Belgium?

It is very important for Belgium to keep its public debt under control. High debt can lead to many problems:

1. Higher Interest Payments – Belgium will have to spend more money just to pay the interest on its loans. This leaves less money for schools, hospitals, and social services.

2. Less Room To Borrow In The Future – If Belgium needs to borrow money during an emergency, it will be harder and more expensive if it already has high debt.

3. Impact On Credit Rating – If Belgium’s debt keeps rising, credit agencies might lower its credit rating. This would make it more expensive for Belgium to borrow money in the future.

4. Risk To Economy – If investors start worrying about Belgium’s ability to pay back its debt, it could create financial instability.

What Should Belgium Do Now?

Experts suggest that countries with high debts should:

• Try to spend government money wisely and reduce waste.

• Grow their economy so that the debt becomes smaller compared to GDP.

• Increase income by improving business, trade, and jobs, which leads to higher tax revenues.

• Avoid borrowing too much for unimportant projects.

Belgium’s public debt is now 106.8 percent of its economy. This is a little higher than last year. Greece, Italy, and France have even higher debts. While some European countries have managed to reduce their debts, many others are still seeing their debts rise.

For Belgium, it is important to focus on keeping its debt under control. This will help the country remain strong, provide good services to its people, and avoid financial troubles in the future.