QUARTERLY PUBLIC ADMINISTRATION ACCOUNT, HOUSEHOLD INCOME AND SAVINGS AND CORPORATE PROFITS - 2ND QUARTER 2023

The General Government Account (PA) and the household and corporate estimates presented in this press release are part of the Institutional Sector Quarterly Accounts. The data relating to PAs are presented and commented in raw form, while those relating to families and companies are presented in a seasonally adjusted form. In the second quarter of 2023, the net debt of public administrations in relation to GDP was -5.4% (-5.7% in the same quarter of 2022). The primary balance of the PAs (debt net of interest expense) was negative, with an impact on GDP of -0.8% (-1.1% in the second quarter of 2022). The current balance of the PAs was positive, with an impact on GDP of 0.3% (0.6% in the second quarter of 2022). The tax burden was 42.0%, unchanged compared to the same period of the previous year. The disposable income of consumer families decreased by 0.1% compared to the previous quarter, while consumption grew by 0.2%. The propensity to save of consumer families is estimated at 6.3%, down 0.4 percentage points compared to the previous quarter. Despite prices remaining substantially stable, the purchasing power of families decreased by 0.2% compared to the previous quarter. The profit share of non-financial companies, estimated at 43.2%, decreased by 1.9 percentage points compared to the previous quarter. The investment rate of non-financial companies, estimated at 22.7%, was stationary compared to the previous quarter. 

Analyses 

In the second quarter of 2023, the public finance picture shows improving debt and stable fiscal pressure compared to the second quarter of the previous year. With reference to families, the increase in final consumption spending, despite the slight decline in disposable income, is reflected in a decline in the propensity to save, which has already been below pre-Covid levels for several quarters. Non-financial companies record a fall in added value and investments and, to a greater extent, in gross operating profit. The result is a decline in the profit share and a stationarity in the investment rate, both at higher levels compared to the pre-Covid period.

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