The president of the republic assumed Monday was more pessimistic than the government about the evolution of inflation in 2023, but said “there is nothing like waiting and waiting” in the hope that the government is right.
“I must admit that the government’s predictions are more optimistic than I had, I must admit. And then there is nothing like waiting to see if the government is right. If it is correct, I recognize that reason. so of course I pay attention”Marcelo Rebelo de Sousa told journalists at the Electricity Museum in Lisbon, assuming some “pessimism” in this matter.
In the macroeconomic scenario underlying the proposed government budget for 2023, the government forecasts inflation of 7.4% in 2022 and 4% in 2023.
Without referring to figures on the evolution of inflation, the head of state admitted that he thought that: “Unpredictability could lead to inflation being slightly higher at least early next year”.
“To which the government responds by saying yes, but the calculation is for the whole of next year, and even if inflation is still at the level of 5%, 5% and the like at the beginning of next year, at the end it will be the is no longer so. That’s why it’s a bills problem. I respect the bills of the government, and I will be very pleased if the government is right.”he concluded.
According to the president of the republic, with the proposal for a state budget for 2023 presented this Monday, the executive sought to respond to the current situation with “a balance that pleases neither the Greeks nor the Trojans”.
“Some wanted more, and then there are economists who say: beware, this is dangerous. The government allows navigation within sight of the coast. Everyone sails within sight of the coast.”considered.
When asked whether he recognizes balance in the budget proposal, he replied: “I recognize a budget that starts with a situation with slack in 2022, so there was a concern to create the slack in 2022. It hurts that slack without taking too many risks assuming the situation will evolve favorably in what is most painful for the Portuguese at the moment, which is the rise in prices”.
According to you, “there is confidence on the part of the government that inflation will not rise, skyrocket or stay very high, so there is confidence.”
“Otherwise, the government is so successful that – as will become apparent next year, has been the practice in recent years – it adapts week after week, month after month, all year round with such navigation in sight of the coast. “It’s getting a bit worse, take precautions. It’s improving a bit, you already have a break to intervene more.”he added.
Marcelo Rebelo de Sousa pointed out that the executive is “taking advantage of the best year of 2022”, referring to that “first part of 2022 went well economically, with tourism, with growth” and that in addition “it helped to run a budget in twelfths” in the first semester.
In the macroeconomic scenario of the state budget proposal for 2023 submitted to the Assembly of the Republic this Monday, the government predicts economic growth of 1.3% and a budget deficit of 0.9% of gross domestic product (GDP) is expected in the next year.
The government’s proposal will be discussed in general in parliament on June 26-27 and the final general vote is scheduled for November 25.
Source: DN
