Government deficit at 7.4% of GDP in the euro area and 6.8% of GDP in the EU

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.”


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