April 27, 2020
According to the statistical office of the European Union (Eurostat), the fourth quarter seasonally adjusted general government deficit of GDP ratio was 8.0% in euro area and 7.5% EU. Notably, “while the deficit in the fourth quarter of 2020 did not reach the record level of the second quarter of 2020, an increase in the deficit compared to the third quarter of 2020 was observed” as per Eurostat. Also, Eurostat noted, “the deficit to GDP ratio increased due to higher expenditure, while revenue continued to increase. Total expenditure continued to be influenced by policy responses to the COVID-19 pandemic.”
Furthermore, Eurostat records showed that the fourth quarter of 2020, total government revenue in euro area and EU closed at 46.8% (Q3: 46.2%) and 46.5% (Q2: 46%) of GDP, respectively. Eurostat noted that in the euro area, “seasonally adjusted total revenue in the euro area increased by around €17 billion compared with the third quarter of 2020.”
On other hand, total government expenditure of GDP in the euro area was 54.8% (Q3: 52.7%) and stood at 54.1% (Q3: 52.1%) in the EU. Notably, Eurostat stated that in the euro area, “seasonally adjusted total government expenditure increased by around €61 billion compared with the third quarter of 2020, mainly due to a higher impact of policy measures to mitigate the economic and social impact of the COVID-19 pandemic.”
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