THE EFFECT OF PUBLIC DEBT ON GDP IN EU COUNTRIES FOR THE PERIOD 2019-2024

This article examines the effect of public debt on real GDP per capita in the European Union (EU) member states. The EU countries are divided into two groups: one comprising countries with public debt exceeding 60 percent of GDP, and the other including countries with public debt below 60 percent of GDP. The primary objective of the article is to investigate the impact of public debt on GDP over the period 2019–2024. The main finding derived from the empirical analysis is that the effect of public debt on GDP is positive both in countries with debt up to 60 percent of GDP and in countries with excessive levels of public debt.