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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