Fiscal Balance in Euro Area
The Euro area's fiscal deficit varied across member countries from 2013 to 2022. Initially, many countries focused on austerity measures to reduce deficits following the Eurozone crisis. However, the COVID-19 pandemic led to a relaxation of fiscal rules, allowing for increased spending to support economies. By 2022, while the fiscal outlook improved with economic recovery, challenges remained in balancing fiscal consolidation with growth and investment needs across the diverse economies of the Euro area.
The fiscal balance was -2.7% of GDP for the Euro Area in the decade up to 2022, above the average for Major Economies of -4.5% of GDP. The fiscal balance in 2022 was -3.6% of GDP. For more fiscal balance information, visit our dedicated page.
Euro Area Fiscal Balance Chart
Note: This chart displays Fiscal Balance (% of GDP) for Euro Area from 2014 to 2023.
Source: Macrobond.
Euro Area Fiscal Balance Data
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Fiscal Balance (% of GDP) | -0.5 | -7.0 | -5.2 | -3.6 | -3.6 |
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects European fiscal balance projections for the next ten years from a panel of 39 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable fiscal balance forecast available for European fiscal balance.
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