Portuguese President Downplays 2025 Deficit Worries Amid Economic Forecasts

President Dismisses Deficit Concerns

Portuguese President Marcelo Rebelo de Sousa has dismissed worries regarding a potential deficit in 2025, as indicated in the Bank of Portugal’s latest economic bulletin for December.

Rebelo de Sousa addressed journalists after reviewing the bulletin, which predicts a return to a 0.1% deficit of the Gross Domestic Product (GDP) in 2025. He noted, "It's true that the prime minister says that the governor is going against the grain because the forecasts all go in the opposite direction. But that's always been the case."

He emphasized the historical context of the current governor, Mário Centeno, stating, "When he was a minister, Centeno was always very demanding and orthodox regarding finances. And so it doesn't change, at that age, it doesn't change."

The president shared insights into Centeno’s cautious approach, saying he "always prefers to prevent, always to tighten." He remarked on the tension between spending desires of government colleagues and Centeno's inclination to maintain financial restraint.

Due to the current external economic situation, Centeno has advised the government to moderate spending, noting that while there is some leeway, there are limits to slack. He pointed out the increases in various sectors of Public Administration and long-promised benefits that need consideration.