Seasonally adjusted government deficit at 2.3% of GDP in the euro area and 2.2% of GDP in the EU

July 23, 2022

In the first quarter of 2022, the seasonally adjusted general government deficit to GDP ratio stood at 2.3% in the euro area and 2.2% in the EU. Decreases in the deficits compared to the fourth quarter of 2021 were observed for the euro area and EU, but the deficit remained at a high level compared to the pre-pandemic period. The deficit to GDP ratio decreased due to stronger decrease in total expenditure as compared to the decrease in total revenue as well as due to a higher GDP in comparison with the fourth quarter of 2021. Total revenue and total expenditure continued to be influenced by policy responses to the COVID-19 pandemic, but to a lesser degree than in previous quarters. In the first quarter of 2022, most Member States continued to record a government deficit.

In the first quarter of 2022, total government revenue in the euro area amounted to 47.0% of GDP, a decrease compared with 48.3% in the fourth quarter of 2021. Seasonally adjusted total revenue in the euro area decreased by around €19 billion compared with the fourth quarter of 2021. Total government expenditure in the euro area stood at 49.3% of GDP, a decrease in the ratio compared with 51.7% in the previous quarter. Seasonally adjusted total government expenditure decreased by around €53 billion compared with the previous quarter.

In the EU, total government revenue was 46.3% of GDP in the first quarter of 2022, a decrease compared with 47.5% of GDP in the fourth quarter of 2021. Seasonally adjusted total revenue in the EU decreased by around €17 billion compared with the fourth quarter of 2021. Total government expenditure in the EU was 48.5% of GDP, a decrease compared with 50.8% of GDP in the previous quarter. Seasonally adjusted total expenditure in the EU decreased by around €55 billion compared with the previous quarter.

Source: Eurostat
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