Eurozone deficit shrinks

Brussels - The eurozone's government deficit shrank for the third consecutive quarter in the three months to last September to near the European Union's official limit of 3% of economic output, Eurostat data showed on Monday.

The seasonally adjusted government gap fell to 3.1%  of gross domestic product (GDP) in the third quarter of last year from 3.3% in the previous period and down from 3.4% in the first quarter of 2013.

The 3.1% shortfall is the smallest since the third quarter of 2008, when it stood at -2.2% of the bloc's economic output, according to Eurostat.

The narrowing of the deficit comes from total revenue rising to 47.1% of the GDP from 46.9% in April-June, with total expenditure flat at 50.2%.

The eurozone, which expanded to 18 countries when Latvia adopted the euro in January, is gradually recovering from its worst recession since creation of the euro in 1999, caused by a sovereign debt crisis that followed years of overspending.

The sharp reduction in government deficits is part of a plan to restore long-term sustainability of public finances and win back market confidence in eurozone government bonds.