Portugal’s sovereign debt totals 132.9 pct of GDP at the end of 1st quarter

1 July 2014

Portugal’s sovereign debt totalled 132.9 percent of Gross Domestic Product (GDP) at the end of March, according to figures from the Budget Support Technical Unit (UTAO), which brings together independent technical experts to support the Portuguese parliament.

In a statement the UTAO said that at the end of the first quarter of 2014 Portuguese public debt was 4 percentage point higher than the figure for 2013 and “exceeded the target set in the 2014-2018 Budget Strategy Document by 2.7 percentage points.”

The estimate from the UTAO is higher than the figure published in May by the Bank of Portugal, which said that Portuguese public debt had reached 132.4 percent of GDP at the end of the first quarter of 2014.

The UTAO noted that the annual target for the budget deficit, of 4 percent of GDP, included expenditure cuts that were vetoed by he Constitutional Court, which “will have a direct impact on the deficit in the second quarter.”

In a letter sent to international creditors on 12 June, the government reiterated that it “maintains the target of achieving a deficit of 4 percent of GDP this year and 2.5 percent in 2015, in line with the recommendations of the Council to move away from a situation of excessive debt.” (macauhub/PT)