Deficit in Portugal was the fourth highest in the Euro Zone. Eurostat … – Business Journal – Portugal

Deficit in Portugal was the fourth highest in the Euro Zone. Eurostat admits upward revision

Despite the three tenths descent, Portugal ranked fourth in eurozone countries with the highest budget deficit. Eurostat admits revise this figure accounted for high when the capital injection in the New Bank.

Portugal ended 2014 with a budget deficit of 4.5% of GDP, reduction of three tenths compared to 2013 which was lower than for the average of the euro countries, where the imbalance of public accounts fell from 2.9% of GDP to 2.4%.

The figures were released on Tuesday by Eurostat, which accounts for 12 euro countries with a budget deficit above 3% of GDP. Portugal is one of the countries, and the Eurozone only three have a higher budgetary imbalance.

Cyprus (8.8%) has the highest deficit among the euro countries, followed by Spain (5.8%) and Slovenia (4.9%). Portugal is in fourth place, ahead of countries such as Ireland (4.1%) and France (4%). Among the EU countries not belonging to the euro the UK and Croatia (both 5.7%) have deficits above Portugal.

The numbers of the deficit in Portugal had already been revealed by the INE under the Excessive Deficit Procedure (EDP), which reported a negative balance of government in Public 7.7169 billion euros. Excluding one-off measures, such as loans to Carris and STCP and the recapitalization of Banif, the deficit last year, which has not yet into account the impact of the new bank recapitalization, corresponding to 3.4% of GDP.

In the stability program approved on Thursday, April 16, the Council of Ministers, the Government has entered a decline forecast the budget deficit to 2.7% of GDP this year, 1.8% in 2016, 1.1% in 2017 and 0.6% in 2018. By 2019 there will be a budget surplus of 0.2%.

Deficit Eurozone falls 1.7 points in three years

With a deficit of 4.5% in 2014, Portugal achieved a reduction of 2.9 percentage points in the space of three years, since in 2011 the deficit was 7.4% of GDP.

A top down to that observed in the average of the eurozone, which went from a deficit of 4.1% of GDP in 2011 to 2.4% of GDP in 2014.

Eurostat admits upward revision of deficit

The Eurostat reserves put the value of the deficit in Portugal in 2014, due to the fact that not account for the impact of the resolution of the BES, with the injection of EUR 4,9 billion in the New Bank.

In the report of the EDP, the INE had said was missing account this operation in the public accounts last year, and the Eurostat is now anticipate that the accounting of such injection of funds “should dictate an increase in the value of the budget deficit.”

“Eurostat makes a reservation on the quality of data reported by Portugal with regard to the capitalization of New Bank “by 4.9 billion euros, the statement said the European Commission’s statistical office.

The office of European statistics states that the final impact of this operation will be evaluated in the coming months in cooperation with the Portuguese statistical authorities (INE) as soon as we know the result of the sale of the New Bank.

The outcome of the sale of the New Bank will occur until the summer, and that time should be calculated the impact the resolution of the BES in the public accounts.