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Government debt is shrinking
Government debt is shrinking
The Faroese debt-to-GDP ratio dropped by 4 percent in the past year
Government debt-to-GDP ratios in Europe: the Faroese debt is among the lowest in Europe and well below the excessive deficit procedure (EDP – red vertical line) threshold set by the EU. Photo: the Faroese National Bank
02.01.2023 - 08:00
The Faroese government debt-to-GDP ratio decreased from 34 percent at the end of 2021 to 30 percent at the end of 2022.
This drop is to a large extent due to an unusually high GDP growth and debt repayments of DKK 200 million in the past year.
It is crucial to keep national debt at a low level because a tiny economy such as the Faroese one is subject to high volatility, writes the Faroese National Bank in its financial stability report for Q3 of 2022.
Read the Faroese version of this article here.
More Faroese News in English.
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