Euro Area Narrows Q1 Deficit to 3.1% of GDP as EU Also Improves
Updated
Updated · European Commission · Jul 21
Euro Area Narrows Q1 Deficit to 3.1% of GDP as EU Also Improves
2 articles · Updated · European Commission · Jul 21
Summary
Eurostat said the euro area’s seasonally adjusted government deficit edged down to 3.1% of GDP in Q1 2026 from 3.2% in Q4 2025, while the EU ratio fell to 3.1% from 3.4%.
47.1% of GDP in revenue and 50.2% in expenditure left the euro area still in deficit, with both ratios slipping from the prior quarter as nominal GDP rose; revenue increased by about €1 billion and spending fell by about €1 billion.
46.6% of GDP in EU revenue and 49.8% in expenditure also marked an improvement, with revenue up about €9 billion and spending down about €2 billion from Q4 2025.
Bulgaria’s entry into the euro area from January 2026 means Q1 aggregate euro-area data now cover EA21 rather than EA20, while all Q1 government finance figures remain provisional.