Portugal: Budget deficit 2.4% in Q1 – UTAO

Page created: Friday, 2 June 2017 14:40 GMT

Budget Deficit  Q1 2017  UTAO

Lisbon, June 1 (Lusa) – Portugal’s Technical Budget Support Unit (UTAO) said on Friday that the budget deficit totalled 2.4% in the first quarter, for national accounts, a year-on-year improvement but “short of the annual target,” which points to a deficit of 1.5%.

In a statement on budget execution the independent experts who support parliament note that, “the public administration deficit in the first quarter of 2017, (…), was between 1.7% and 3.1% of GDP [Gross Domestic Product],” which puts the central figure at 2.4%.

This calculation does not taken into account the impact recapitalisation of Caixa Geral de Depósitos (CGD) “may come to have on national accounts,” the experts said, noting that this operation, “totalled €3.9 billion, around 2.1% of the annual GDP projected in the 2017 State Budget [OE2017].”

The recapitalisation is still being analysed by Eurostat and, to date, there has been no recommendation of how it should be recorded in the national accounts.

UTAO also said that, considering that there were no one-off operations in the first three months of this year, “the deficit is expected to have recorded a drop of 0.9 percentage points of GDP.”

However UTAO noted that this “unfavourable slip” in relation to the target for the year as set out in the Budget, “does not meeting (the target) at risk.”