in update
The Public Finance Council (CFP) has no “indications” —at least for now— that the financial situation in the US and Switzerland in recent weeks has had an effect on the projections of the Portuguese economy, creating “instability” in the financing conditions.
“At this time we still have no indication that, in the immediate future, this [a turbulência nos mercados] may affect our concrete projections, that is, this may have an immediate effect on the debt market, creating instability in the financing conditions of the Portuguese economy”, said the president of the CFP, Nazaré da Costa Cabral, at the conference presentation launch. of the “Economic and Budgetary Perspectives 2023-2027”.
Nazaré da Costa Cabral stresses that the country’s financial and budgetary situation, despite the trajectory of public debt reduction, “is still not a completely reassuring situation, it still has not completely removed us from the radar of the financial markets”. “Hence the signals that must be given that there is a solid commitment to guarantee the sustainability of public finances, so that the country cannot be surprised,” he added.
This Tuesday, the CFP updated Portugal’s macroeconomic and budgetary outlook for this year and next, but did not take into account recent developments in the banking system in the US and Switzerland, with the collapse of SVB and Credit Suisse. Despite this, Nazaré da Costa Cabral still does not see signs of contagion to the projections for Portugal.
Public accounts are heading towards balance in 2025. In 2022 the deficit will have remained at 0.5%, CFP projects
Source: Observadora
