LISBON: The Minister of Finance Maria Luís Albuquerque stated that Portugal is to see better than expected growth with GDP advancing by 1.6 percent this year and viewning this Portugal set out the executive’s macroeconomic forecasts for the coming years.
Minister Albuquerque was speaking at a press conference following the cabinet’s approval of the Stability and Reform Plan with the minister terming the new forecast as ‘prudent’ with the 2016 growth forecast raised from 1.7 percent to 2 percent and 2.4 percent for the following two years.
The Portuguese state would also see its debt level remain above 100 percent of GDP through to the end of 2019 with that year due to turn in a budget surplus of 0.2 percent with the 2015 deficit due to come in at 2.7 percent before sliding over the following years to 1.8 percent, 1.1 percent and 0.6 percent before entering the black in 2019.
The debt forecast was itself subject to an upwards revision with the government, now well into its final year of office, expecting to close this year with debt equivalent to 124.2 percent of GDP, up from last October’s forecast of 123.7 percent.
The national debt burden is expected to enter into a declining curve sliding back to 107.6 percent by 2019.
