Seasonally adjusted government deficit at 11.6% of GDP in the euro area

Second quarter of 2020. Seasonally adjusted government deficit at 11.6% of GDP in the euro area and 11.4% of GDP in the EU (Eurostat figures).

Highest quarterly deficit published in the time series since 2002

In the second quarter of 2020, marked by COVID-19 containment measures in all Member States, the seasonally

adjusted general government deficit to GDP ratio stood at 11.6% in the euro area and 11.4% in the EU.

The second quarter of 2020 saw both the highest deficit recorded in the euro area and the EU since the start of the time series as well as the sharpest quarter on quarter increase. In the second quarter of 2020, all Member States a government deficit.

In the second quarter of 2020, total government revenue in the euro area amounted to 47.4% of GDP, compared

with 46.8% of GDP in the first quarter of 2020.

This increase as a percentage of GDP is due to stronger relative decreases in GDP than decreases in total revenue – seasonally adjusted total revenue in the euro area decreased by around €132 billion compared with the first quarter of 2020.

Total government expenditure in the euro area stood at 59.0% of GDP, a significant increase compared with 49.3% in the previous quarter.

Seasonally adjusted total government expenditure increased by around €95 billion compared with the first quarter of 2020, mainly due to policy measures to mitigate the economic and social impact of the COVID-19 pandemic.

In the EU, total government revenue was 47.1% of GDP in the second quarter of 2020, an increase compared to

46.2% of GDP in the first quarter of 2020. Total government expenditure in the EU was 58.6% of GDP, an increase

compared with 48.8% of GDP in the previous quarter.