Monday, January 30, 2023

The eurozone deficit rose to 3.3% in the third quarter due to energy

The public deficit in the euro zone increased by more than one point in the third quarter of last year, up to 3.3% of GDP, due to the support measures against high energy prices, while the debt was reduced to 93% due to economic growth, according to data published this Monday by the Eurostat community statistics office.

In the European Union as a whole, the seasonally adjusted public deficit also increased by more than one percentage point, to 3.2%, and the bloc’s public debt fell to 85.1%.

Eurostat explains that the “considerable increases” in the deficit in the third quarter compared to the previous quarter are mainly due to the growth of total spending which, like revenue, continues to be marked by the response of governments to the covid-19 crisis. , although “at a lower level than in previous quarters”.

“Measures to alleviate the impact of energy prices began to have a stronger impact on public accounts in the third quarter of 2022 and most Member States continued to have public deficits,” summarizes the European statistics office.

Thus, the biggest gaps were those of Romania (-6.3%), Hungary (-6.1%), Belgium (-5.1%), France (-4.7%), Poland and the Czech Republic (-4.4%), Bulgaria (-4.3 %), Spain (-4.2%) and Malta (-4.1%).

Regarding the behavior of public revenue in the euro area, these fell from an amount equivalent to 47.5% of GDP in the second quarter to a percentage of 47.2% of GDP in the third quarter, although it represents an increase of around €15,000 million in seasonally adjusted figures.

On the other hand, the total spending of the euro countries expanded by one percentage point between July and September, up to 50.5% of GDP, which implies an increase in spending of around €58,000 million in relation to the previous quarter.

In the EU as a whole, public revenue stood at 46.4%, compared to 46.8% in the second quarter (with seasonally adjusted growth of €11 billion), while total spending was also one point higher than in the preceding period, 48.6% pointing to an increase of €67,000 million.

Eurostat also published this Monday the public debt data for the third quarter of 2021 in the euro area, a period in which it fell to 93% of GDP compared to the 94.2% registered in the previous quarter. It also decreased in the European Union as a whole to 85.1% of GDP, 1.3 points less.

This contraction, explains Eurostat, was due to the fact that the increase in GDP “compensated” the increase in debt in absolute terms registered by the countries.

The Member States with a public debt higher than the Community average were Greece (178.2%), Italy (147.3%), Portugal (120.1%), Spain (115.6%), Belgium (106.3%) and Cyprus (91.6%) in that period. ), while Estonia (15.8%), Bulgaria (23.1%), Luxembourg (24.6%), Denmark (30.7%) and Sweden (33.6%) were the ones with the least debt.

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