In the third quarter of this year, Portugal’s government accounts recorded a historic surplus in democracy and the largest since the country joined the euro. But by the last quarter of this year, this positive balance, measured in national accounts (a measure that will be reported later to Brussels and observed in the assessment in the light of the Stability Pact), should already completely disappear and give way to a new quarterly deficit, which will exceed 2.2% of gross domestic product (GDP), according to new data from INE.
However, this is because the severe inflationary crisis is already starting to hurt the economy and the large-scale government support paid to households and businesses since October is already reflected in government spending at the end of the year.
With very high inflation and a spike in billing for many companies, which managed to increase their margins and revenues, government accounts were inflated in an unprecedented way from July to September due to increased revenue collection from taxes and contributions.
According to data from the National Institute of Statistics (INE) released yesterday, and based on calculations by Dinheiro Vivo, in the third quarter of this year, the government surplus of the Ministry of Finance of Fernando Medina reached a maximum of democracy and official series (going back to early 1999), in the order of 6.8% of GDP, about 4.2 billion euros, according to the institute.
Read the continuation of this article on Dinheiro Vivo
Source: DN
