Suresh
Joined: 16 Sep 2005
Posts: 8391
Location: Maryland
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Subject: Portugal's latest draft 2010 budget shows deficit equivalent to 8.3% of GDP
 Posted: Thu Jan 28, 2010 12:07 pm |
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FT Alphaville: Port-ugal in the storm
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Like Greece, the Iberian nation has racked up its fair share of foreign investment in recent years. This chart, from Deutsche Bank’s fixed income team and focused on foreign bank holdings of Greek government debt, is worth reprising:
Portugal submitted a draft of its 2010 budget to parliament on Tuesday. The proposed fiscal-tightening was quite modest for the year, while the budget deficit for 2009 was revised from a previously estimated 8 per cent of GDP to a new estimate of 9.3 per cent.
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Moody’s ... didn’t say anything explicit about a downgrade, [but] they do have some interesting words on the debt affordability of a country like Portugal, as the eurozone’s economic recovery exposes discrepencies between members:
| Quote: | | As other Eurozone members are likely to register more robust recoveries, there also is a risk that interest rates in the single currency area may rise faster than would be appropriate for Portugal. Given that the Portuguese government is no longer in the low-debt category and the challenges it faces ensuring sustained deficit reduction, the rating agency adds that higher interest costs also pose concerns about Portugal’s debt affordability going forward. |
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Associated Press: Portugal, mired in debt, rejects Greece comparison
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Presenting the 2010 state budget late Tuesday, Finance Minister Fernando Teixeira dos Santos said his cuts would bring the deficit down to 8.3 percent this year.
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Teixeira dos Santos ... estimated that public debt will climb to 85.4 percent of GDP this year, up from 76.6 per cent in 2009, as the government invests in the economy and increases welfare payouts amid rising unemployment....
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Suresh
Please feel free to agree with or critique the article excerpts and our comments. Also, please post excerpts from current articles that you've read and which may help all of us get a more complete macroeconomic big picture. |
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