Seasonally adjusted government deficit at 11.6% of GDP in the euro area and 11.4% of GDP in the EU

October 23, 2020

According to the statistical office of the European Union (Eurostat), the second quarter seasonally adjusted general government deficit of GDP ratio was 11.6% for euro area and 11.4% EU, the highest deficit reported since the start of the time series as well as the sharpest quarter on quarter increase in both the euro area and EU. Also, Eurostat noted, all member states recorded a government deficit in the second quarter.

Furthermore, Eurostat stated that for the second quarter of 2020, total government revenue in euro area and EU closed at 47.4% (Q1: 46.8%) and 47.1% (Q1: 46.3%) of GDP, respectively. Eurostat noted, “this increase as a percentage of GDP is due to stronger relative decreases in GDP than decreases in total revenue – seasonally adjusted total revenue in the euro area decreased by around €132 billion compared with the first quarter of 2020.”

On other hand, total government expenditure of GDP in the euro area and EU was 50% (2020 Q1: 49.3%) and stood at 58.6% (2020 Q1: 48.8%), respectively. Notably, for the euro area, Eurostat stated, “. Seasonally adjusted total government expenditure increased by around €95 billion compared with the first quarter of 2020, mainly due to policy measures to mitigate the economic and social impact of the COVID-19 pandemic.”


Analyst Certification –The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure –The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.