In the first quarter (Q1) of 2024, the seasonally adjusted general government deficit to GDP ratio stood at 3.2 per cent in the euro area (EA20) and 3 per cent in the European Union (EU), showing a significant decrease from 4 per cent and 3.9 per cent, respectively, in the fourth quarter of 2023, according to data released by Eurostat, the statistical office of the EU.

The euro area’s government total revenue in Q1 2024 amounted to 46.2 per cent of GDP, down from 46.7 per cent in the previous quarter. This decline was mainly due to a slight decrease in seasonally adjusted government total revenue in absolute terms, combined with an increase in nominal GDP. Specifically, seasonally adjusted total revenue in the euro area decreased by around €2 billion compared to Q4 2023.

Government total expenditure in the euro area was 49.4 per cent of GDP in Q1 2024, a decrease from 50.7 per cent in the previous quarter. This drop was attributed to a reduction in seasonally adjusted total government expenditure by approximately €31 billion and an increase in GDP, as per Eurostat.

In the EU, government total revenue was 45.9 per cent of GDP in Q1 2024, compared with 46.2 per cent in the previous quarter. Seasonally adjusted total revenue in the EU increased by around €9 billion compared to Q4 2023.

Government total expenditure in the EU stood at 48.9 per cent of GDP in Q1 2024, down from 50.1 per cent of GDP in the previous quarter. This decrease was due to a reduction in seasonally adjusted total expenditure by approximately €29 billion compared to the preceding quarter.

Fibre2Fashion News Desk (DP)