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Brussels has a "very positive budgetary framework" for Portugal
The European Commissioner for the Economy, Paolo Gentiloni, underlined today that Brussels has a positive budget framework for Portugal, which maintains a surplus in public accounts and that the impact of the IRS reform will be noticed this year.
© Lusa
Economia Comissão Europeia
"Overall, we know that we have a very positive budgetary picture for Portugal", the commissioner said at a press conference in Brussels, adding that the spring economic forecasts for Portugal estimate "a change in the surplus, which was 1.2% last year, and which will fall to 0.4% this year and 0.5% in 2025, but" which continue to refer, "obviously, to a positive surplus, which confirms a good budgetary picture for the country".
Regarding the impact of the IRS reform, announced by the Government, the commissioner said that it will start in 2024 and will continue until 2025, but "depends on the level of detail and the adoption of the Portuguese budgetary projections".
The European Commission is more optimistic and today predicted a budget surplus of 0.4% this year, one tenth above the Portuguese Government, and a public debt ratio of 95.6.
The community executive also improved Portugal's economic growth forecasts to 1.7% this year and 1.9% next year, rates above the eurozone and EU average, driven by private consumption and investment.
On the other hand, Brussels maintained the inflation rate forecast in Portugal at 2.3% this year and 1.9% in 2025.
The European Commission publishes two global forecasts (spring and autumn) and two interim forecasts (winter and summer) each year.
Read Also: Brussels predicts unemployment rate in Portugal of 6.5% in 2024 (Portuguese version)
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