According to a flash estimate by Eurostat, the statistical office of the European Union, annual inflation in the Eurozone is expected to be 2.0 % in October 2024, up from 1.7 % in September. Gross Domestic Product (GDP) rose by 0.4 % in the Eurozone and 0.3 % in the EU, +0.9 % in both regions compared to Q3 2023
Looking at the main components of inflation in the euro area, services are expected to show the highest annual inflation rate in October (3.9 %, stable compared with September), followed by food, alcohol and tobacco (2.9 % vs. 2.4 % in September), non-energy industrial goods (0.5 % vs. 0.4 % in September) and energy (-4.6 % vs. -6.1 1 % in September).
According to a preliminary quick estimate published by Eurostat, seasonally adjusted GDP increased by 0.4 % in the euro area and by 0.3 % in the EU in the third quarter of 2024, compared with the previous quarter. In the second quarter of 2024, GDP increased by 0.2 % in the euro area and by 0.3 % in the EU.
These preliminary flash GDP estimates are based on incomplete data sources and are subject to further revision.
Compared to the same quarter of the previous year, seasonally adjusted GDP increased by 0.9 % in both the euro area and the EU in Q3 2024, after +0.6 % in the euro area and +0.8 % in the EU in the previous quarter.
Of the Member States for which data is available for the third quarter of 2024, the highest increase compared to the previous quarter is Ireland (+2.0 %), followed by Lithuania (+1.1 %) and Spain (+0.8 %). The decrease was recorded in Hungary (-0.7 %), Latvia (-0.4 %) and Sweden (-0.1 %). Annual growth rates were positive in seven countries and negative in six.
Reducing the tax-to-GDP ratio in the EU and the euro area in 2023
Total tax-to-GDP ratio, i.e. the sum of taxes and clean social contributions as a percentage gross domestic product(GDP) in 2023 in the EU is 40.0 %, down from 40.7 % in 2022. Eurozone the tax-to-GDP ratio is also reduced from 41.4 % in 2022 to 40.6 % in 2023.
In absolute terms, EU tax and social contribution revenues will increase by €308 billion in 2023 compared to 2022, reaching €6,883 billion.
This information comes from data on Taxation that published today by Eurostat. This article presents some of the findings from a more detailed Article Statistics Explained.
Highest tax-to-GDP ratios in France, Belgium and Denmark
The tax-to-GDP ratio varied significantly across EU countries in 2023, with the highest tax-to-GDP ratios in France (45.6 %), Belgium (44.8 %) and Denmark (44.1 1 %).
At the other end of the ranking, Ireland (22.7 %), Romania (27.0 %) and Malta (27.1 %) recorded the lowest shares.
The largest increases in the tax-to-GDP ratio in Cyprus and Luxembourg
The tax-to-GDP ratio increased in 11 EU countries in 2023 compared to 2022, with the largest increases in Cyprus (from 35.9 % in 2022 to 38.8 % in 2023) and Luxembourg (40.2 % in 2022 and 42.8 % in 2023).
Conversely, a decline of more than 0.1 percentage points of GDP was recorded in 12 EU countries, with the largest declines in Greece (from 42.8 % in 2022 to 40.7 % in 2023) and France (from 47.6 % in 2022 to 45.6 % in 2023).
Eurostat/ gnews - RoZ
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