Portugal’s massive public debt took a new dive at the end of February, increasing by €2.4 billion on January’s €246 billion.
But, say reports, it has to be set against the context that 2017 closed with public debt at 125.6% – which was “below estimates” and “unparalleled since 2011”.
Notwithstanding the “absolute terms”, public debt has effectively dropped when compared to “the rhythm of growth of the economy”.
Tabloid texts on this subject recall that “help to the banks” is responsible for billions of Portugal’s public debt.
In 2017 alone, €4.5 billion went into ‘recapitalising’ State bank CGD. The money represented 2.4% of GDP and caused Eurostat to query whether it could in fact be explained away as a public investment, as the Portuguese government wanted (click here).
The European statistics agency charged with promoting the harmonisation of statistical methods across member states decided that it couldn’t.
natasha.donn@algarveresident.com
