January 24, 2022
According to the statistical office of the European Union (Eurostat), the third quarter seasonally adjusted general government deficit of GDP ratio was 4.0% for euro area and 3.7% in EU. “Significant decreases in the deficits compared to the second quarter of 2021 were observed, but the deficits remained at a high level compared to the pre-pandemic period,” noted by Eurostat. Also, “the deficit to GDP ratio decreased due to increases in total revenue, decreases in the total expenditure as well as due to a higher GDP in comparison with the second quarter of 2021. Total revenue and total expenditure continued to be influenced by policy responses to the COVID-19 pandemic. In the third quarter of 2021, most Member States continued to record a government deficit,” as indicated by Eurostat.
Furthermore, Eurostat stated that for the second quarter of 2021, total government revenue in euro area and EU closed at 47.0% (Q2: 46.8%) and 46.5% (Q2: 46.5%) of GDP, respectively. It was observed that, “seasonally adjusted total revenue in the euro area increased by around €53 billion compared with the second quarter of 2021.”
On the other hand, total government expenditure of GDP in the euro area and EU was 51% (Q2: 53.2%) and stood at 50.2% (Q2: 52.3%), respectively. Notably, for the euro area Eurostat stated, “seasonally adjusted total government expenditure decreased by around €14 billion compared with the second quarter of 2021.”
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