Portugal posts budget deficit of 4.9 pct of GDP in 2013

24 April 2014

Portugal’s budget deficit in 2013 totalled 4.9 percent of gross domestic product (GDP), which was 1.5 percentage points less than in the previous year, Eurostat said Wednesday.

The figures published by the European Union’s statistics office confirm the figures from Portugal’s National Statistics Institute published three weeks ago, according to which the deficit posted in 2013 was the equivalent of a financing need of 8.122 billion euros.

According to Eurostat, Portugal’s public debt reached 129 percent of GDP in 2013, which was a rise of 4.9 percentage points compared to the previous year.

Portugal, alongside Slovenia, Greece, Ireland, Spain, the United Kingdom, Cyprus, Croatia, France and Poland, is one of the ten EU countries with a budget deficit of over 3 percent and one of 16 countries with a debt to GDP ratio of over 60 percent.

On Tuesday Portugal issued 750 million euros of 10-year treasury bonds at an average interest rate of 3.575 percent, in what was its first public debt issue without the support of a banking syndicate since it signed its financial bailout programme in May 2011.

The interest rate achieved was the lowest for Portuguese treasury bonds since 2006. (macauhub/PT)