Marques Mendes: CGD’s recapitalization should not be included in the deficit

  • ECO News
  • 24 April 2017

Marques Mendes assures the Statistics Portugal agreed the amount injected in CGD will not be accounted for in the deficit. He also revealed that growth will be very positive in the first quarter.

The recapitalization of Caixa Geral de Depósitos should not be accounted for in the deficit. The assurance was made by Luís Marques Mendes in his weekly commentary on the Portuguese TV station Sic.

“The Portuguese statistical authorities have agreed that the money which will be injected in Caixa Geral de Depósitos will not be included in the deficit and Brussels should confirm the interpretation made by those authorities“, said the State Council. “It is likely that CGD‘s recapitalization is not be included in the deficit, which is good because if it did, the deficit would increase from 1.5 — the forecast for 2017 — to 3%”, Marques Mendes added.

"The Portuguese statistical authorities have agreed that the money which will be injected in Caixa Geral de Depósitos will not be included in the deficit and Brussels should confirm the interpretation made by those authorities.”

Luís Marques Mendes

State Council

Portugal will grow more than expected in the first quarter

Marques Mendes also revealed that Portugal will have a very positive economic growth in the first quarter of 2017, due to the almost 9% rise in investment.

“In a few days, the news of the growth in the first quarter will go public. And those news will be quite a surprise, since they exceed expectations“, Marques Mendes assures, referring to the quick estimate of the Quarterly National Accounts which will be disclosed on May, 15.

“For example, investment will grow around 9% and income from Social Security will also grow around 5%, which means that employment is increasing“, he added.

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