The big debt of selected countries is horrible. PIIGS countries (Portugal, Italy, Ireland, Greece, Spain) could be the main starter of debt crisis. Bad political and economic situation in selected countries is warn for the rest of EU.
Fundamental data confirms Portugal is next in the order for a debt crisis.
As Statista’s Brigitte van de Pas notes, on average, European Union countries had a gross government debt of roughly 81 percent of GDP in 2018. This average disguise real differences between EU countries. Whereas Greece had a government debt of 177.8 percent in 2018, Estonia had a debt of only 8.8 percent – the lowest in the entire EU zone, according to zerohedge.com.
Situation in Greece is well known, debt is high, but they are slowly getting better and better, but it’s still not enough. The Italian debt is lower than the Greek, but still in dangerous numbers, at over 130 percent of GDP. Portugal had a debt of 122.5 percent.
Every country has noticed a positive sign of improvement against the 2017. European Commission forecasted a slow, but further decrease of their government debt in 2019. Whether this holds true for Italy, with their newly-elected government of Movimento 5 Stelle and Lega remains to be seen, according to zerohedge.com.
Question is, how could these countries get on with possible incoming crisis? Economy is still going well, but we have noticed some slowdown of production signalization. We are apart of one biggest economic growth in history and recession will surely come. Maybe not now, maybe not after one year but recession is process, which every economy needs from time to time and when this situation once will come, who will lend money to these countries, when they are not able to payback money during expansion?