Portugal had the fourth largest budget surplus in the eurozone between the second and third quarter last year, according to eurostat figures, out today.
The third quarter budget surplus was the highest in 23 years, with the eurostat data showing the relative position of Portugal within the eurozone.
According to the EC’s statistics institute, Portugal’s budget surplus of 1.5% of GDP in July and September of last year was only surpassed by Luxembourg (2.4%), Germany (2.5%) and Malta (4.2%).
The result also compares favourably with the eurozone average, where a budget deficit of 0.3% of GDP was reported.
This performance in the public accounts figures in the third quarter almost guarantees that the total deficit for 2017 will be below the 1.4% forecast in the 2018 State Budget.
Prime Minister António Costa has hinted at a figure of 1.2% of GDP for the year-end.
These public account figures are all very well but Portugal’s overall debt is a mountainous 130.8% of GDP.
Greece is way further in debt at 177.4% of GDP and Italy’s is higher than Portugal’s at 177.4% but the eurozone average is only 88.1%, showing that Portugal needs now to pay off a significant amount of debt before being considered a robust economy that will attract grade A investors and before paying lower rates for its public borrowing.
Read also: 'Caveat emptor: Portugal's recovery is not all it seems'
