PS says UTAO contrary to “media hysteria” of economic forecasts – Correio da Manhã

John Galamba praised the competent work of UTAO.

The PS considered this Thursday that the UTAO report contrary, “largely a certain media hysteria that has been created around the credibility “of the macroeconomic scenario of the budget proposal presented by the Government.

Speaking to Lusa, the deputy PS John Galamba praised the work” very competent “of the Technical Unit of budget Support (UTAO), which presented on Wednesday the final version of its analysis to the State Budget proposal for 2016 (OE2016) Government.

“the report of UTAO belies a large extent, a certain media hysteria that has been created on the budget, although UTAO point positive and negative risks, as it did for all budgets, “said the deputy, noting that the analysis of UTAO” in detail comment on the assumptions “of the forecasts of the Government and also of the Fund International Monetary Fund (IMF) and the European Commission.

For the socialist deputy, the assessment of independent experts who support the parliament indicates that “the estimate of the Government, is not only justified, it is conservative,” and that in the case of consumption, the “risk is upward, i.e., can grow”, assuming that “the gains of support performance measures that are in OE2016 should have an impact on private consumption to be greater than what is expected. “

in addition, congressman John Galamba said,” if we compare what UTAO said of the stability program of the previous government, what you say now, the conclusion it is clear and it is that this macro-economic framework is significantly more credible than the previous one. “

in its final report on the budget proposal, the UTAO recalls that the contribution of private consumption will increase from 1.7 percentage points in 2015 to 1.6 percentage points, which is “in line with the slight slowdown in growth”, which will be 1.8% in 2016.

the technicians also indicate that “the scene of the OE2016 considers a slowdown in private consumption, despite the projected increase in remuneration “, which is justified by predicting” a slight increase in the savings rate. “

regarding the savings rate, the proposal the OE2016 anticipates a slight increase of 4.7% in 2015 to 4.8% of gross disposable income in 2016, a rise that UTAO claims to be “consistent with the forecast for a continued increase in private consumption.”

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