(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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