Economy secures 80% of deficit reduction

 In News, Public Finances, Public Financing

Around 80% in the reduction of Portugal’s deficit in 2022 was down to economic growth rather than actions by the government.

Negócios reports that a reduction in interest rate costs was responsible for 13% of budgetary consolidation. Measures taken by Portugal’s finance ministry were only responsible for just a small part.
This was the conclusion of the Council for Public Finances (CFP) which on Thursday released a budget execution analysis.
“The reduction in the deficit (3 percentage points of GDP) continued to be supported by a favourable economic development (2.4 percentage points of GDP) and by a reduction in interest rate costs (0.4 pp. of GDP). The remaining part (0.1% of GDP) was down to Government intervention”, said the CFP president, Nazaré da Costa Cabral.