CFP validates PM’s expectation: the deficit will stand below the Government’s goal
Based on data until September of 2017, CFP (Portuguese Public Finance Council) points to a deficit below 1.4%, and highlights the Government has never had such a high primary surplus.
Now, someone other than the Portuguese prime minister says so: the 2017 budgetary deficit should really stand below the 1.4% of GDP goal that had been set by the Government, according to CFP (Portuguese Public Finance Council). The entity headed by Teodora Cardoso also highlights two records: the larger quarterly surplus since 1995 and, between January and September, the largest primary surplus since there is a record.
The deficit until September “represents a higher homologous improvement than what was foreseen for the entire year, with the help of the budgetary surplus registered in the third quarter, of 2.6% of GDP generated in the quarter, the highest since there are comparable statistics (first quarter of 1995)”, is stated in CFP’s report, published this Tuesday.
In short, this means that in the first nine months of the year, the Finance minister Mário Centeno was able to get a higher cut in the deficit than what it is expected for the entire year of 2017. In addition, in that period, without considering spendings with interests, the accounts registered a surplus “which ascended to 3.6% of GDP generated in that period” and it was “also a maximum surplus in the statistical series”, CFP highlights.
"(…) The results seen until the third quarter of 2017 and the most recent information about the fourth quarter (although still incomplete) allow for an anticipation of a deficit lower than 1.4% of GDP for 2017.”
With the information available so far, and without accounting for the impact of CGD’s recapitalization in the deficit, CFP says it is possible to anticipate “a deficit lower than 1.4% of GDP for 2017”. The Portuguese PM António Costa has stated the deficit should fall below 1.2%.
