António Costa sees 2017 deficit at 1.1%. Teodora Cardoso is more optimistic and points to 1%
Public accounts should evolve more positively between 2018 and 2022 than what was projected in the last report, according to CFP (Portuguese Public Finance Council).
The Portuguese Public Finance Council (CFP) projects the Portuguese economy will continue growing, although at a less elevated pace, considering that public accounts must evolve more positively than what was projected by CFP in September. The council headed by Teodora Cardoso anticipates a 2.2% GDP growth for 2018, and it foresees that the 2017 deficit stood at 1%, below what was foreseen by the prime minister, António Costa. This projection for the deficit does not include, however, the impact of the recapitalization of Caixa Geral de Depósitos (CGD).
The 2017 growth was in line with CFP’s forecasts, standing at 2.7%, “which will make the product generated by the Portuguese economy to finally surpass the 2007 level”, is stated by CFP in a report disclosed this Thursday.
The evolution of the 2022 deficit, projected by CFP based on policies already in force, should continue being positive: in 2018, it should stand at 0.7% of GDP, 0.3% in 2019 and surplus starting in 2020. Only if there will be “a maintenance of the ability to contain expenses shown in 2016 and 2017, as well as follow-up on the strategy of sustained reduction of public debt”.
Teodora Cardoso qualifies this trajectory as “a very favorable evolution of the budgetary deficit, one which considered to be impossible, not so long ago”.
