BRUSSELS (AFP) ― Eurozone public finances improved in 2013 as the economy finally turned the corner on a record recession but total debt levels remained dangerously high, official data showed on Wednesday.

The average eurozone government deficit ― the shortfall between revenue and spending ― came in at 3 percent of output last year.

That was in line with the European Union ceiling and down from 3.7 percent in 2012, the Eurostat statistics agency said.

The overall figures are broadly in line with growing signs that the worst of the eurozone debt crisis, which at one point threatened to destroy the euro, is over although several member countries will be applying budget rigor and deep economic reforms for years to come.

Public finances in bailed out Greece and Portugal sent signals of marked improvement on Wednesday, Spain signaled faster recovery, and France ― seen as lagging on reforms ― detailed new policies to put its economy in shape.

Total accumulated debt increased to 92.6 percent of gross domestic product, up from 90.7 percent, rising even further above the European Union 60-percent limit.

The continued increase in total debt levels reflects the high cost of the economic slump and debt crisis as governments borrowed heavily in an effort to stabilize their economies.

Christian Schulz at Berenberg Bank said the figures were positive overall, showing that the debt crisis austerity programs were “paying off.”

Adjusted figures excluding the cost of bank recapitalization efforts were even better, giving a 2.8 percent deficit for last year, Schulz said in a note.

“With growth returning, increasing tax revenues and falling (spending) should drive the eurozone’s deficit even lower in coming years,” he argued.

For the full 28-nation European Union, the average public deficit was 3.3 percent, down from 3.9 percent, while total debt increased to 87.1 percent of GDP from 85.2 percent, Eurostat said in a report based on submissions by the EU member states.