Portugal’s budget deficit fell to 0.4% of GDP in the first quarter from 6% a year ago, thanks to strong economic expansion at the beginning of the year, according to official figures.
GDP grew by 11.9% year-on-year in the first quarter, mainly due to the recovery of the key tourism sector.
The National Statistical Institute said that between January and March this year, revenues increased by 11.9% compared to the same period a year ago, while expenditures decreased by 1.4%.
“The positive development for tax revenues (20.1%) and social contributions (8.2%), indicates a recovery of economic activity and the labor market compared to the same period last year, which was characterized by measures for “reducing the pandemic,” said INE.
The government forecasts a deficit reduction of 1.9% of GDP this year from 2.8% last year, while forecasting growth of 4.9% despite the impact of the war in Ukraine.
The country’s central bank raised its growth estimates for this year to 6.3% from 4.9% in March, mainly due to the recovery in tourism, although it stressed that the consequences of the war in Ukraine would be a burden. , after a dynamic start to the year.
Source: Capital
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