Eurozone combined government deficits fell last year

The aggregate government deficit-to-GDP ratio of eurozone countries dropped slightly in 2023, data from Eurostat showed on Monday. The ratio fell from 3.7 per cent in 2022 to 3.6 per cent in 2023, while it rose from 3.4 per cent to 3.5 per cent in the EU.

On the other hand, the government debt-to-GDP ratio fell from 90.8 per cent at the end of 2022 to 88.6 per cent at the end of 2023, while in the EU it declined from 83.4 per cent in 2022 to 81.7 per cent in 2023.

In all, 11 countries reported deficits above the EU’s ceiling of three per cent of GDP, including France at 5.5 per cent. The European Commission is expected to invoke its deficit infringement procedure for all these countries.

Meanwhile, business sentiment in Germany rose to its highest level since May 2023 in April, data published by the Ifo Institute showed on Wednesday.

The Ifo business climate index, a measure of sentiment among German businesses, rose to 89.4 in April from 87.9 in March, beating the 88.8 expected by economists, boosted by falling inflation and the expectation that the European Central Bank will soon ease monetary policy by cutting interest rates.

Businesses were more satisfied with their current business situation and were also more optimistic about the future. However, the index is still below the 100 level that separates pessimism from optimism, albeit there are increasing signs that optimism in Europe’s largest economy is picking up.

Finally, the number of new homes sold in the US rose substantially in March, according to a report released by the Commerce Department on Tuesday.

New home sales, which make up about one in every 10 of all home sales, jumped by 8.8 per cent to a seasonally adjusted annual rate of 693,000 units, exceeding the 670,000 rate forecast by economists. This was the highest monthly increase since December 2022.

Meanwhile, the median price of a new home rose to US$430,700 in March, compared to US$400,500 a month earlier. Sales increased across the country, but strongest in the south. were

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