OE2027: Debt Closes Next Year at 84.5%, but Interest-Bearing Expenditure Shoots 23.2% Economic Journal
6 Articles
6 Articles
Portuguese state will have to pay 8,217 million euros in debt interest, resulting from the increase of interest rates on the market. Minister says it is a reflection of the market, not of a specific risk of the country.
Despite a further fall in the public debt ratio, the rise in sovereign interest rates results in financing costs ranging from EUR 6,669 million to EUR 8,217 million – in relative terms, the jump is from 2% to 2.4% of GDP.
Nominal GDP growth and the primary surplus "must continue to contribute to a reduction in the debt ratio".
The public debt ratio will fall to 87.5% of the Gross Domestic Product (GDP) in 2026 and 84.5 % in 2027, according to the report accompanying the budget proposal delivered today in Parliament.
The worsening interest in public life will weigh on the objectives of the Executive, but economic growth will help to maintain the trend of decline.
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