Portugal and Cape Verde on list of countries with highest public debt

18 November 2013

Portugal and Cape Verde are the two Portuguese-speaking countries on the latest list of countries with the highest public debt as percentage of GDP published by the American magazine Forbes.

The list is topped by Greece, with public debt at 173 percent of GDP, and includes developed countries such as Italy, Spain, France, the United Kingdom and Japan, with the USA in tenth place.

Portugal, whose public debt stands at 118 percent of gross domestic product, ranks fourth on the list, while Cape Verde appears in ninth place.

Cape Verdean Prime Minister José Maria Neves downplayed the ranking assigned to the island country, saying it was just another published list.

Neves explained that Cape Verde’s public debt “is sustainable and we are investing in the future,” for without it there would be no ports, airports, roads, dams, water supply infrastructures and electric power, etc.

The 2014 state budget envisages public debt at 98 percent of GDP, with planned public investment meant to increase aggregate demand and respond to shrinking private investment in the country, he said.

“If we did not have this public investment package, we would have a crisis situation here in the country, unemployment would be much higher and we would be in a major recession,” Neves stated. (macauhub)