ROME. In the third quarter of 2021, the net debt of public administrations in relation to GDP was -6.2% (-9.8% in the same quarter of 2020). Istat notes this, explaining that “the debt of the” public administrations on GDP has significantly reduced in terms of trends due to the substantial increase in revenues, which more than compensated for the increase in expenditure “. The tax burden was 41.0%, an increase of 2.0 percentage points compared to the same period of the previous year.
In this period the disposable income of consumer households increased by 1.8% compared to the previous quarter, while consumption grew by 3.6%. Istat notes it. Households’ propensity to save was 11.0%, down by 1.6 percentage points compared to the previous quarter. “The disposable income of families and their purchasing power have grown significantly – explains Istat -, while the sustained growth in final consumption has generated a decline in the propensity to save, which however remained at levels higher than those recorded before the crisis. “.
Against a 0.6% increase in the implicit household final consumption deflator, purchasing power increased by 1.2% compared to the previous quarter. The decline in the propensity to save, explains Istat, derives from a growth in final consumption expenditure that is more sustained than that of gross disposable income (+ 3.6% and + 1.8%, respectively). The investment rate of consumer households in the third quarter of 2021 is estimated at 6.2%, a slight decrease (-0.1 percentage points) compared to the previous quarter, against an increase in gross fixed investments (+1.0 %) and the previously reported increase in gross disposable income.
The profit share of non-financial companies, estimated at 42.8%, increased by 0.3 percentage points compared to the previous quarter. Istat notes this, adding that the investment rate of non-financial companies, equal to 21.5%, decreased by 0.7 percentage points compared to the previous quarter. “While the profit share of non-financial companies has slightly increased compared to the previous quarter, their investment rate has fallen for the second consecutive quarter”, highlights the Institute of Statistics.
The primary balance of general government (debt net of interest expense) was negative, with an incidence on GDP of -2.9% (-6.4% in the third quarter of 2020). The current balance of the PA was also negative, with an incidence on GDP of -2.0% (-4.2% in the third quarter of 2020). Total government expenditure in the third quarter of 2021 increased by 1.5% compared to the corresponding period of 2020, while their incidence on GDP (equal to 51.3%) decreased in trend terms by 1.5 percentage points .
In the first three quarters of 2021, the relative incidence was 53.7%, down by 1.8 percentage points compared to the corresponding period of 2020. Current expenditure recorded, in the third quarter of 2021, a tendential increase of 3, 7% while capital outlays fell by 15.9%. Total revenues increased in trend terms by 9.5% and their incidence on GDP was 45%, up by 2 percentage points compared to the corresponding period of 2020.
In the first three quarters of the year, the incidence of total revenues on GDP was 44.9%, an increase of 0.4 percentage points compared to the corresponding period of 2020. Current and capital account receipts in the third quarter 2021 marked, in trend terms, an increase of 8.9% and 107.3% respectively.
Overall, in the first three quarters of 2021 the PAs recorded net debt equal to -8.8% of GDP, an improvement compared to -11.1% in the corresponding period of 2020. In the first nine months of 2021, in terms of incidence on GDP, the primary balance and the current balance were both negative, equal to -5.3% (-7.5% in the same period of 2020) and -3.7% (-6.4% in the same period of 2020, respectively) corresponding period of 2020). In the same period, the tax burden stood at 40.4% of GDP, up by 0.8 percentage points compared to 39.6% in 2020.