January 26, 2023
In the third quarter of 2022, the seasonally adjusted general government deficit to GDP ratio stood at 3.3% in the euro area and 3.2% in the EU. Sizeable increases in the deficits compared to the second quarter of 2022 were observed for the euro area and the EU. The deficit to GDP ratio mainly increased due to sizeable increases in total expenditure. Total revenue and total expenditure continued to be influenced by policy responses to the COVID-19 pandemic, although to a lesser degree than in previous quarters. Measures to alleviate the impact of high energy prices started to have a stronger impact on the government balance in the third quarter of 2022 and the majority of Member States continued to record a government deficit.
Seasonally adjusted government revenue and expenditure for the euro area and EU
In the third quarter of 2022, total government revenue in the euro area amounted to 47.2% of GDP, a decrease compared with 47.5% in the second quarter of 2022. Seasonally adjusted total revenue in the euro area increased by around €15 billion compared with the second quarter of 2022. Total government expenditure in the euro area stood at 50.5% of GDP, a sizeable increase in the ratio compared with 49.5% in the previous quarter. Seasonally adjusted total government expenditure increased by around €58 billion compared with the previous quarter.
In the EU, total government revenue was 46.4% of GDP in the third quarter of 2022, a decrease compared with 46.8% of GDP in the second quarter of 2022. Seasonally adjusted total revenue in the EU increased by around €11 billion compared with the second quarter of 2022. Total government expenditure in the EU was 49.6% of GDP, a sizeable increase compared with 48.6% of GDP in the previous quarter. Seasonally adjusted total expenditure in the EU increased by around €67 billion compared with the previous quarter.
Source: Eurostat
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
