In the first quarter (Q1) of 2024, the seasonally adjusted general government deficit-to-GDP ratio was 3.2% in the euro area (EA20) and 3% in the European Union (EU), showing a notable decrease from 4% and 3.
9%, respectively, in the fourth quarter of 2023, according to data from Eurostat, the EU’s statistical office.
Total government revenue in the euro area for Q1 2024 amounted to 46.2% of GDP, down from 46.7% in the previous quarter. This decrease was primarily due to a slight drop in seasonally adjusted government revenue in absolute terms, coupled with an increase in nominal GDP.
Specifically, seasonally adjusted total revenue in the euro area fell by about €2 billion compared to Q4 2023.
Government expenditure in the euro area was 49.
4% of GDP in Q1 2024, a decline from 50.7% in the previous quarter. This reduction was due to a decrease in seasonally adjusted total government spending by approximately €31 billion, alongside an increase in GDP, as reported by Eurostat.
In the EU, total government revenue was 45.9% of GDP in Q1 2024, down from 46.2% in the prior quarter. Seasonally adjusted total revenue in the EU rose by about €9 billion compared to Q4 2023.
Government expenditure in the EU stood at 48.9% of GDP in Q1 2024, down from 50.1% in the previous quarter. This decrease was due to a reduction in seasonally adjusted total expenditure by around €29 billion compared to the previous quarter.
