EU's government deficit stands at 3.2% of GDP in Q3 2022: Eurostat

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.

In the EU, total government revenue was 46.4 per cent of GDP in the third quarter of 2022, a decrease compared with 46.8 per cent 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 per cent of GDP, a sizeable increase compared with 48.6 per cent of GDP in the previous quarter. Seasonally adjusted total expenditure in the EU increased by around €67 billion compared with the previous quarter, as per Eurostat.

In the third quarter of 2022, total government revenue in the euro area amounted to 47.2 per cent of GDP, a decrease compared with 47.5 per cent 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 per cent of GDP, a sizeable increase in the ratio compared with 49.5 per cent in the previous quarter. Seasonally adjusted total government expenditure increased by around €58 billion compared with the previous quarter.

ALCHEMPro News Desk (DP)