NRR: Czech government debt low in EU, but grows fastest

(CIANEWS) - Compared to other EU countries, the debt-to-GDP ratio in the Czech Republic is still at a relatively low level and puts the Czech economy in an imaginary sixth position. As part of its study on the development of state debt, this information was provided by the National Budget Council (NRR). At the same time, the Council warned that the debt of the government-institution sector increased from 30.1% of GDP in 2019 to 41.9% of GDP in 2021, which represented an above-average and the highest increase in the EU, by 11.8 pp, over two years. The Council also said that because of the increase in state debt and refinancing of the current debt before maturity, there was a high need for financing in 2020 and 2021. In this period, the Czech Republic issued state bonds worth CZK 1,300bn on financial markets. Yet the average annual need for funding between 2008 and 2019 totalled CZK 316bn.



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