July 24, 2023
According to the statistical office of the European Union (Eurostat), the first quarter of 2023 seasonally adjusted government deficit to GDP ratio was at 3.2% in the euro area and 3.0% in the EU, a decrease in both regions comparable to the fourth quarter of 2022. These decreases can be primarily attributable to higher nominal GDP and lower total expenditure. Eurostat also noted, “measures to alleviate the impact of high energy prices had a strong impact on the government balances in the second half of 2022 and the first quarter of 2023 and the majority of member states continued to record a government deficit”.
In the first quarter of 2023, total government revenue in the euro area and EU amounted to 46.2% (Q4 2022: 46.9%) and 45.4% (Q4 2022: 46.5%) of GDP, respectively. As compared to the fourth quarter of 2022, seasonally adjusted overall revenue in absolute terms in the euro area climbed by roughly €3 billion versus €7 billion in the EU.
The total government expenditure in the euro area and EU stood at 49.4% (Q4 2022: 51.6%) and 48.5% (Q4 2022: 50.7) of GDP, respectively. Seasonally adjusted total government expenditure fell by around €46 billion in the euro area and by €51 billion in the EU relative to the fourth quarter of 2022.
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