In the third quarter (Q3) of 2021, the seasonally adjusted general government deficit to gross domestic product (GDP) ratio stood at 4 per cent in the euro area and 3.7 per cent in the European Union (EU), according to Eurostat, the EU statistical office. Significant decreases in the deficits compared to the Q2 2021 were observed, but the deficits remained at a high level compared to the pre-pandemic period.

The deficit to GDP ratio decreased due to rises in total revenue, decreases in the total expenditure as well as due to a higher GDP in comparison with the second quarter of 2021.

Total revenue and total expenditure continued to be influenced by policy responses to the COVID-19 pandemic. In Q3v 2021, most EU member states continued to record a government deficit, Eurostat said in a press release.

In the third quarter (Q3) of 2021, the seasonally adjusted general government deficit to GDP ratio stood at 4 per cent in the euro area and 3.7 per cent in the EU, according to Eurostat. Significant decreases in the deficits compared to the Q2 2021 were observed, but the deficits remained at a high level compared to the pre-pandemic period.

In Q3 2021, total government revenue in the euro area amounted to 47 per cent of the GDP, an increase compared with 46.8 per cent in Q2. Seasonally adjusted total revenue in the euro area increased by around €53 billion compared with Q2.

Total government expenditure in the euro area stood at 51 per cent of the GDP, a decrease in the ratio compared with 53.2 per cent in the previous quarter. Seasonally adjusted total government expenditure decreased by around €14 billion compared with Q2.

In the EU, total government revenue was 46.5 per cent of the GDP in Q3 2021—stable compared with Q2. Total government expenditure in the EU was 50.2 per cent of the GDP, a decrease compared with 52.3 per cent of GDP in the previous quarter.

The euro area comprises Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.

Fibre2Fashion News Desk (DS)