July 23, 2021
According to the statistical office of the European Union (Eurostat), the first quarter of 2021 seasonally adjusted general government deficit of GDP ratio was 7.4% in the euro area and 6.8% EU. Notably, “Decreases in the deficit compared to the fourth quarter of 2020 were observed, but the deficit remains at a high level.” as per Eurostat. Also, Eurostat noted, “The deficit to GDP ratio decreased due to lower expenditure, while revenue remained stable as a percentage of GDP. Total revenue and total expenditure continued to be influenced by policy responses to the COVID-19 pandemic. In the first quarter of 2021, most Member States continued to record a government deficit.”
Furthermore, Eurostat records showed that the first quarter of 2021, total government revenue in euro area and EU closed at 46.6% (2020 Q4: 46.6%) and 46.3% (2020 Q4: 46.3%) of GDP, respectively. Eurostat noted that in the euro area, “Seasonally adjusted total revenue in the euro area increased by around €7 billion compared with the fourth quarter of 2020.”
On other hand, total government expenditure of GDP in the euro area was 54.0% (2020 Q4: 54.0%) and stood at 53.1% (2020 Q4: 53.9%) in the EU. Notably, Eurostat stated that in the euro area, “Seasonally adjusted total government expenditure decreased by around €11 billion compared with the fourth quarter of 2020.”
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
