Portugal expected to leave the excessive deficit procedure in 2016

14 April 2016

Portugal is expected this year to leave the excessive deficit procedure if the forecast issued by the International Monetary Fund of a budget deficit of 2.9 percent of gross domestic product (GDP), according to the “Fiscal Monitor” document.

In the recently released document, IMF staff project budget deficits for Portugal of 2.9 percent in 2016 and 2017 and 2.8 percent in the years from 2018 to 2021.

Portuguese public debt is expected to reach 129.9 percent of GDP this year and reduce marginally from 2017 onwards, to 127.3 billion euros to reach 123.8 percent in 2021.

The gross domestic product of Portugal at the end of 2015 was estimated at 179.3789 billion euros, according to the National Accounts published by the National Statistics Institute (INE).

Based on the figures announced by the IMF, this year Portugal is expected to record the second largest budget deficit and also the second largest public debt in the Euro Zone, surpassed in the first indicator only by France and Spain and in the second indicator only by Italy, which is expected to have a public debt of 133 percent of GDP. (macauhub/PT)