July 22, 2020
According to the statistical office of the European Union (Eurostat), the first quarter seasonally adjusted general government deficit of GDP ratio was 2.2%, the highest deficit reported in the Euro area since the second quarter of 2015. Eurostat noted that, this sharp increase occurred, “when COVID-19 containment measures began to be widely introduced by Member States.” As for the European Union (EU), the deficit to GDP increased by 2.3%, up from 0.7% reported for the fourth quarter of 2019.
Furthermore, Eurostat stated that for the first quarter of 2020, total government revenue in euro area and EU closed at 47% and 46.3% of GDP, respectively. Also, when compared to 2019 fourth quarter, the total government revenue for the euro area was 46.4% of GDP and EU was 46% of GDP. As it relates to euro area, Eurostat noted, “this increase as a percentage of GDP is due to stronger decreases in GDP than decreases in total revenue – seasonally adjusted total revenue in the euro area decreased by around €26 billion compared with the fourth quarter of 2019.”
On other hand, total government expenditure of GDP in the euro area and EU was 49.2% (2019 Q4: 47.1%) and stood at 48.6% (2019 Q4: 46.7%), respectively. Notably, for the euro area, Eurostat stated, “seasonally adjusted total government expenditure increased by around €16 billion compared with the fourth quarter of 2019.” Additionally, there was also a year over year increase from 46.9% and 46.5% reported for Euro area and EU for the 2019 first quarter, respectively.
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