1% surplus for Portugal

Portugal recorded a surplus of 1.0% of Gross Domestic Product (GDP) in the second quarter of this year, below the 1.4% recorded in the same period of 2022, according to the National Statistics Institute (INE).

By TPN/Lusa, in News, Business, Portugal, Economy, Finance · 24 Sep 2023, 08:05 · 3 Comments

“Considering the quarterly values and not the year ending in the quarter, the balance of AP [Public Administrations] in the second quarter of 2023 was positive at 689.0 million euros, corresponding to 1.0% of GDP, which compares with 1 .4% in the same period last year”, says the INE in the Quarterly National Accounts by Institutional Sector.

Compared to the same period of the previous year, there was an increase of 7.8% in revenue and 8.9% in expenditure, details the statistical institute.

In the first three months of the year, Portugal recorded a budget surplus of 1.2% of GDP.

For the entirety of this year, the Government maintains its forecast of a deficit of 0.4%, in line with 2022 and below the 0.9% recorded in the State Budget for 2023, as announced in April by the Minister of Finance in the presentation of the Stability Program (PE).

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Comments

Whatever sins this government has committed in the past, I'm proud of leaders who can manage to produce a surplus. Long may it last. Driving debt down is so good for our future generations. Most modern governments are not so responsible.

By Brian from Other on 26 Sep 2023, 14:36

That's quite phenomenal given Portugal's economic history. I still think is Centeno's work, Medina is bland, Centeno's was a political star for the simple fact he is very good in what he does.

By Diogo F. from Lisbon on 26 Sep 2023, 21:06

I hope Rishi Sunak is reading this. Portugal used to run huge budget deficits and had public debt of well over 100% of GDP. Now it is running a surplus, so taking in more tax revenue than it spends, helping to reduce public debt.
The UK is the opposite, with a budget deficit of 5% of GDP last year, and public debt of nearly £2.6 trillion, or 100% of GDP. For every £100 in tax revenue generated, the UK is spending £110, which is both irresponsible and unsustainable. As long as the UK government keeps spending more than it generates in tax revenue, and runs a budget deficit, public debt will keep increasing. It was 'only' around £1 trillion when the Tories came to power in 2010. This is what happens when a government implements Socialist policies, financing spending via debt. Ludicrous of a Conservative government to be subsidising people's energy bills! It's like asking people to pay £1000 more in tax each year to get a £1000 reduction in their energy bill. The result will be downward pressure on the pound which I'd expect to be worth less than a Euro before the end of the decade, and upward pressure on interest rates. The UK is currently not in a good place.

By Billy Bissett from Porto on 27 Sep 2023, 18:27