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Euro Zone Gov’t deficit drops to 1.5%, - Hungary’s highest in 2006

The government deficit in the Euro area decreased to 1.5% of GDP in 2006, the Eurostat said Monday.

The government deficit stood at 2.5% of GDP in 2005. Meanwhile, the government deficit in the EU27 declined to 1.6% of GDP in 2006 from 2.4% in the prior year. The government debt to GDP ratio dropped to 68.6% at the end of 2006 from 70.3% in 2005 and it fell to 61.4% in EU27 from 62.7% in the previous year. The largest government deficits in percentage of GDP were recorded by Hungary, followed by Italy, Portugal and Poland.

Among the member states, 21 members registered an improved government balance relative to GDP, while it worsened in five states. The lowest ratios of government debt to GDP were registered in Estonia, Luxembourg, Latvia and Romania. In the euro area, the government expenditure was equivalent to 47.2% of GDP, and government revenue to 45.6%. In both Euro area and EU27, the government expenditure ratio declined slightly, while revenue ratio improved. (rttnews)