Covid-19: Seasonally adjusted government deficit rose sharply to 2.2% of GDP in the euro area

In the first quarter of 2020, when COVID-19 containment measures began to be widely introduced by Member States, the seasonally adjusted general government deficit to GDP ratio stood at 2.2% in the euro area and 2.3% in the EU.

This is a sharp increase in both areas in comparison with the fourth quarter of 2019 and the highest deficit recorded in the euro area since the second quarter of 2015.

These data are released by Eurostat, the statistical office of the European Union.

In the first quarter of 2020, total government revenue in the euro area amounted to 47.0% of GDP, an increase

compared with 46.4% of GDP in the fourth quarter of 2019.

This increase as a percentage of GDP is due to stronger decreases in GDP than decreases in total revenue – seasonally adjusted total revenue in the euro area decreased by around €26 billion compared with the fourth quarter of 2019.

Total government expenditure in the euro area stood at 49.2% of GDP, a significant increase compared with 47.1% in the previous quarter. Seasonally adjusted total government expenditure increased by around €16 billion compared with the fourth quarter of 2019.

Total government revenue

In the EU, total government revenue was 46.3% of GDP in the first quarter of 2020, an increase compared to 46.0% of GDP in the fourth quarter of 2019.

Total government expenditure in the EU was 48.6% of GDP, an increase compared with 46.7% of GDP in the previous quarter.