While the ratio in the euro area remained stable compared to Q1 2023, a slight increase was observed for the EU (3.1 per cent in Q1).
The ratio of seasonally-adjusted general government deficit to GDP in Q2 2023 was 3.3 per cent in the euro area—stable compared to Q1, and 3.2 per cent in the EU over Q1’s 3.1 per cent.
While euro area government revenue was 46.1 per cent of the GDP in Q2—a decrease over Q1’s 46.3 per cent, it was 45.6 per cent of the GDP in the EU—stable compared to Q1.
Measures to alleviate the impact of high energy prices continued to have a strong impact on the government balances in the second half of 2022 and the first and second quarters this year and the majority of EU member states continued to record a government deficit, according to an official release.
In Q2 2023, total government revenue in the euro area amounted to 46.1 per cent of the GDP. A decrease compared with 46.3 per cent in Q1 2023 was observed mainly due to an increase in GDP. In absolute terms, seasonally-adjusted total revenue in the euro area increased by around €17 billion compared with Q1 2023.
Total government expenditure in the euro area stood at 49.4 per cent of the GDP, a slight decrease in the ratio compared with 49.5 per cent in the previous quarter, due to an increase in nominal GDP. Seasonally-adjusted total government expenditure increased by around €19 billion compared with the previous quarter.
In the EU, total government revenue was 45.6 per cent of GDP in Q2 2023, the ratio remaining stable as compared with Q1. Seasonally-adjusted total revenue in the EU increased by around €30 billion compared with Q1.
Total government expenditure in the EU was 48.9 per cent of the GDP, an increase compared with 48.7 per cent of GDP in the previous quarter. Seasonally-adjusted total expenditure increased by around €38 billion compared with the previous quarter.
Fibre2Fashion News Desk (DS)