Finance: Target the deficit will be fulfilled despite growth lower than expected – Daily News – Lisbon

Ministry of Finance admitted in a statement that the economy is taking longer to accelerate

The Ministry Finance reiterated today that the deficit reduction target will be met this year, despite economic growth in the second quarter was lower than the underlying in the 2016 State Budget (OE2016).

“the Portuguese economy increased 0.8% over the second quarter of 2015. a lower evolution to that underlies the OE2016. the economy is just taking longer to accelerate the pace of growth “, today admitted the ministry tutored by Mario Centeno in a statement after of the national Statistics Institute (INE) has today released its flash estimate of national accounts.

according to the figures released by the INE, the Portuguese economy grew 0.2% between April and June compared to the first quarter of this year, a rate similar to the previous two quarters, and increased 0.8% year on year, which represents a slowdown from the 0.9% growth in the previous quarter.

in the statement, the ministry also said that “the nominal GDP growth due to will have remained robust in the second quarter (after 3.3% in the first quarter),” concluding that “for this, the fiscal performance in the first half is found in line with the budgeted “.

So the tutelage reaffirmed the objective of the deficit for the whole year:” the rigor of public accounts is reflected also in the containment of public expenditure. As a result, the improvement in the government deficit in the first half exceeded projected in the 2016 Budget, allowing foresee the fulfillment of the annual goal. “

No mention remains or changes the target of economic growth of 1, 8% this year, as provided for in OE2016 and reiterated in the stability program 2016-2020, the Finance Ministry said only that “in the coming months, economic growth should be sustained in the signs of clear recovery of the labor market.”

the ministry also stressed that “the industrial confidence indicators, construction, services and trade, are above the values ​​that registavam the end of 2015″ and the “investment expectations in 2016, published by the INE It is the highest since 2007, “adding that Portugal 2020 will strengthen investment.