On 29 June, the national statistics institute (INE, Instituto Nacional de Estatistica) announced that the fiscal deficit reached 8.7% of GDP in the first quarter. The fiscal gap was below the 9.3% of GDP deficit incurred in the fourth quarter but was much larger than the 5.9% of GDP deficit planned for the entire year, indicating that the government will have to adopt new austerity measures to meet the conditions of the EUR 78 billion (USD 112 billion) bail-out package agreed with the European Union (EU) and International Monetary Fund (IMF) The new government, led by Pedro Passos Coelho from the centre-right Social Democratic Party (PSD, Partido Social Democrata), has already pledged its commitment to fulfil all the EU-IMF requirements. In his first speech to parliament after the election, Pedro Passos stated that his administration plans to implement a new one-off income levy. The one-time tax will be equivalent to 50% of the Christmas bonus (the 13th salary) and the government expects to raise around EUR 800 million with this measure. In addition, Passos announced that several structural measures, including the restructuring of state-owned companies, will be initiated in the current quarter, earlier than initially planned. According to the bailout program, Portugal has committed to cutting the fiscal deficit to 5.9% of GDP by the end of this year, 4.5% in 2012 and 3.0% in 2013.
Fiscal deficit surprises to the downside in Q1 amidst new austerity measures
June 29, 2011
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Portugal Economic News
September 30, 2016
Portugal’s industrial production edged up in August after July’s drop.
September 29, 2016
The survey of consumer sentiment produced by the National Statistical Institute showed that the consumer confidence index inched up from minus 12.7 points in August to minus 11.3 points in September.
August 31, 2016
Portugal’s GDP increased a seasonally adjusted 0.3% in Q2 over the previous quarter, according to revised data published by the National Statistics Institute on 31 August.
August 30, 2016
The survey of consumer sentiment produced by the National Statistical Institute showed that the consumer confidence index inched up from minus 13.1 points in July to minus 12.7 points in August.
August 30, 2016
Portugal’s industrial production edged down again in July after June’s rebound.