Economics
Portugal Cuts Economic Growth Forecasts, Sees Higher Debt Ratio
- Finance Ministry lowers GDP outlook in 2017 budget proposal
- Government will add taxes on property wealth, sugary drinks
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The Portuguese government cut its growth outlook and said the budget deficit and debt ratio will be higher than previously forecast.
The economy will grow 1.2 percent in 2016 and 1.5 percent in 2017, lower than estimates announced in April for expansion of 1.8 percent in each year, the Finance Ministry said in its 2017 budget proposal. The budget deficit will narrow to 1.6 percent in 2017 from 2.4 percent in 2016, which is wider than the 2.2 percent target announced in April for this year. Still, it’s within the 2.5 percent limit set by the European Commission.