IMF projects public sector budget deficits for 2023, 2024, not surplus

The International Monetary Fund on Wednesday has said today that it expects Portugal this year to have a public sector budget deficit equivalent to 0.2% of gross domestic product, with the ratio decreasing to 0.1% next year, in forecasts that are more pessimistic than those of the government, which is projecting a surplus for both years. In its Budget Monitor report, published today as part of the IMF and World Bank spring meetings, the institution headed by Kristalina Georgieva has revised down its forecasts for Portugal’s budget deficit from the previous 0.4% of GDP in 2023 and 0.2% in 2024 – the figures released in June. The IMF report does not yet take into account the draft state budget for 2024 submitted by Portugal’s government to parliament yesterday, in which the government pencils in a budget surplus of 0.8% this year and 0.2% in 2024. (It has to be remembered that IMF forecasts are famous for being off the mark.)