Economists from Fitch: the Government’s goals for public debt are “too ambitious”

Page created: Tuesday, 28 November 2017 10:06 GMT

Fitch   Government  Public Debt

Fitch’s research unit increased Portugal’s score for political stability because of the approval of the SB. Concerning public debt, the forecast is worse: it should decrease, but less than expected.

“The Portuguese government’s 2018 budget suggests that the country will remain on a healthier fiscal trajectory over the next couple of years at least”, analysts write, adding there are “growing sign” that the current governance solution will remain in power, in spite of the fact that the ruling party does not hold a majority. The political risk index for Portugal, calculated by Fitch’s research unit, increased from 74.4 to 75.6, reflecting a larger stability (0 is the largest risk, 100 is the lowest).

In its analysis of the Government’s proposal for the 2018SB, BMI Research considered the Finance minister’s strategy is to “take advantage” of the economic growth to “ease off austerity slightly” and maintain the deficit below the European Commission’s goals. These economists from Fitch foresee the improvements in the labor market and the economic growth will be sufficient to increase the income from the State and compensate for the measures adding up to expenses.