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Portugal: Budget deficit totals 2.1% in Q1

Page created: Friday, 23 June 2017 14:14 GMT

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Deficit  GDP

Lisbon, June 23 (Lusa) – The budget deficit stood at 2.1% of gross domestic product (GDP) until March in national accounts, down from 3.3% in the same period last year, but above the government’s target for the year as a whole, of 1.5%, according to the National Statistics Institute (INE).

In the quarterly national accounts by institutional sector for the first quarter of this year, INE said that “the public administration accounts stood at -€965.6 million in the first quarter of 2017, corresponding to -2,1% of GDP.”

This result “does not include any impact of the recapitalisation of Caixa Geral de Depósitos (CGD),” with INE noting that the public bank’s recapitalisation plan began in the first quarter of this year, which was “considered not to constitute State aid by the European Commission.”

This operation has a total value that “will reach €4.874 billion (€4.444 billion already realised in the first quarter of 2017), of which €3.944 billion were borne by the Portuguese State (corresponding to approximately 2.1% of GDP).”The budget deficit stood at 2.1% of gross domestic product (GDP) until March in national accounts, down from 3.3% in the same period last year, but above the government’s target for the year as a whole, of 1.5%, according to the National Statistics Institute (INE).

INE said that “in view of the complexity of this operation, “a process of dialogue and exchange of information is underway with the European Commission (Eurostat) on its national accounst records,” and INE is required to reach a conclusion by March 2018, at the time of the first notification of the Excessive Deficit Procedure for 2017.

ND/CA // CA

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