UPDATE 1-Portugal 2022 budget deficit narrows sharply to 0.4% of GDP

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds debt, latest government estimate) LISBON, March 24 (Reuters) - Portugal's budget deficit narrowed sharply to 0.4% of gross domestic product in 2022 from 2.9% a year earlier, benefiting from a robust economic recovery along with record inflation that boosted tax revenues, official data showed on Friday. The fiscally-prudent Socialist government in January said the gap had likely ended last year below 1.5% of GDP, down from its previous estimate of 1.9%, but the figure released by the National Statistics Institute (INE) ended up far narrower. The INE also said the budget deficit was expected to end this year at 0.9%, the same level as targeted by the government in the budget months ago. The debt-to-GDP ratio, which finished last year at 113.9% after dropping from over 125% in 2021, is expected to drop further this year to 110.8%, the INE said. In 2022, Portugal's economy expanded 6.7%, the strongest growth since 1987, but is expected to slow down sharply this year due to higher interest rates and rampant inflation. (Reporting by Sergio Goncalves; editing by Andrei Khalip)

Messaging: sergio.goncalves.reuters.com@reuters.net))
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