European Commission sees 2022 deficit at 4.5% of GDP, debt 128.1%

The European Commission has forecast a public sector budget deficit for Portugal equivalent to 4.5% of the country’s gross domestic product this year, and public indebtedness of 128.1%, in both cases higher than the government’s own forecasts, it was disclosed on Thursday.

According to the commission’s Autumn Economic Forecasts, Portugal’s budget deficit is expected to narrow to 3.4% of GDP in 2022, while the debt ratio falls to 123.9%.

The government, in the report accompanying its draft state budget – which was rejected by parliament last month – had pencilled in a deficit forecast of 4.3% and indebtedness of 126.9%.

It also saw these ratios falling in 2022 to 3.2% and 122.8% respectively.