The Public Finance Council (CFP) projects budget deficits for 2023 and 2024, but anticipates that the budget balance will head towards 2025. In previous projections, 2023 already had a positive balance. In 2022, the deficit will have been well below the 1.9% projected in the General State Budget by the Government (although Fernando Medina and António Costa have already said that the deficit would be even lower). The CFP estimates that it remained at 0.5%, but that in 2023 it will end up slightly accelerating to 0.6% “as a consequence of the sharp slowdown in economic growth, the impact of the application of energy measures and the increase of public spending.” service wages.
The PPC maintains the growth projection for 2023, at 1.2%, but raises the unemployment estimates from 5.3% to 6.4%, which reflects an increase in the active population above the increase in employment, associated “with an expectation of an increase, in the short term, in the participation rate.”
In the 2023-2027 economic projections, the CFP is still advancing to a projection of public debt below 100% of GDP in 2027, the year in which, in his opinion, it could remain at 95.9%.
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Source: Observadora
