Government wants to end the parliamentary term with an almost zero deficit

  • ECO News
  • 6 April 2018

The Government has began speaking with the Stability Programme. In 2019, Executive is pointing to a growth stabilization and a deficit goal of 0.2%.

The Portuguese Government foresees an almost zero deficit in 2019. On the Stability Programme, which defines the main outlines of the last State Budget of this legislature, the Executive will take on a new deficit reduction, of around 1,000 million euros, to 0.2% of GDP, while stabilizing the economy in comparison to the previous year, ECO knows.

These new goals translate the reinforced optimism from the Government both fiscally and economically when compared to projections made one year ago. By then, the Finance Ministry expected a 0.3% deficit and an economic growth of 2%. Now, it is expecting less deficit and a larger GDP increase.

However, concerning the anticipated results for 2018, the Executive tells a different story. The Executive’s Stability Programme is preparing to take on a deficit goal of 0.7% this year and a GDP growth rate of 2.3%.

This means that, in the document that will get to Brussels this month, the Government still wants to commit to a deficit reduction (from 0.7% to 0.2%, which translates into a correction of around one billion euros), but believes the economy should stabilize at the 2.3% it hopes to achieve in 2018.