Portugal May Miss Budget Deficit Target
World Economy

Portugal May Miss Budget Deficit Target

Portugal faces a “tangible risk” of not meeting its budget deficit target this year if there are no further cuts in spending, the International Monetary Fund warned.
“In the absence of steps to reduce primary spending, the overall fiscal deficit this year is currently projected at 3.2 percent of gross domestic product,” the IMF’s second Post-Program Monitoring report read, Xinhua news agency reported.
The Portuguese government has insisted that the country will manage to bring its budget deficit down to 2.7 percent of GDP.
The IMF also said faster medium-term growth required further structural reforms.
“Recent efforts to move forward with privatization, transport concessions and lowering natural gas prices for end-users have been encouraging, but reforms to increase the effectiveness of the public sector have continued to lag,” the IMF said.
“Labor market reforms to spur job creation remain a particular challenge, especially for lower-skilled workers, and fresh reform initiatives in this area would be desirable,” the IMF said.
Portugal signed a 78-billion-euro ($87.8 billion) bailout with the European Central Bank, IMF and European Commission in 2011.
The country is nursing itself back to financial health and has said it will repay the IMF €2 billion ($2.3 billion) it owes earlier than scheduled.
Portugal paid the IMF €6.6 billion ($7.4 billion) back in March.

Short URL : http://goo.gl/aifXeu

You can also read ...

Argentina Lacks Options to Defend Peso
With interest rates sky-high and the economy heading for...
BMW Seeking Broader China Collaboration
The opening-up is an important policy and German carmaker BMW...
Westinghouse Electric, the leading US nuclear fuel producer, said it relies on China for zirconium and zirconium powder  for use in nuclear fuel assemblies
A broad cross-section of US businesses has a message for the...
Vehicle loans have rapidly expanded as cars purchased during a tax rebate scheme for first cars  in 2012-13 have begun to be replaced.
Consumer borrowing is accelerating significantly in Thailand...
Turkey, Qatar in Currency Swap Deal
The central banks of Qatar and Turkey signed a currency swap...
Asian Countries Vie to Set Up Crypto Valleys
The race to establish cryptocurrency hubs in Asia is gathering...
International Labor Organization has called for stronger...
UK Business Pessimism Rising
Business leaders’ confidence in the British economy has fallen...