Q1 2023 seasonally-adjusted govt deficit 3.2% of GDP in EA20, 3% in EU

Decreases in the deficits compared to Q4 2022 were observed for the euro area and the EU due to decreases in total expenditure as well as increases in nominal GDP.

Measures to alleviate the impact of high energy prices had a strong impact on the government balances in the second half (H2) last year and Q1 this year and the majority of EU member states continued to record a government deficit.

In Q1 2023, total government revenue in the euro area amounted to 46.2 per cent of the GDP, a decrease compared with 46.9 per cent in Q4 2022, due to increases in GDP.

In absolute terms, seasonally-adjusted total revenue in the euro area increased by around €3 billion compared with Q4 2022.

Total government expenditure in the euro area in Q1 this year stood at 49.4 per cent of GDP, a decrease in the ratio compared with 51.6 per cent in the previous quarter, due to decreases in total expenditure as well as increase in nominal GDP.

Seasonally-adjusted total government expenditure decreased by around €46 billion compared with the previous quarter.

In the EU, total government revenue was 45.4 per cent of GDP in Q1 2023, a decrease compared with 46.2 per cent of GDP in Q4 2022.

Seasonally-adjusted total revenue in the EU increased by around €7 billion in Q1 2023 compared with Q4 2022.

Total government expenditure in the EU was 48.5 per cent of GDP, a decrease compared with 50.7 per cent of GDP in the previous quarter.

Seasonally-adjusted total expenditure decreased by around €51 billion compared with the previous quarter.

Fibre2Fashion News Desk (DS)