Rio considers upward revision of European Commission as "change" and awaits state budget – Jornal Económico

PSD President Rui Rio said today that the European Commission's upward revision of economic growth for Portugal was “change”, preferring to wait for the government's macroeconomic forecasts in the State Budget, which he foresees “more prudent”.

At the end of the meeting of the PSD parliamentary group, Rui Rio was asked about the European Commission's autumn economic forecasts, which improved Portugal's forecast of 2% economic growth by three tenths this year, a tenth higher than expected by the Government, and maintained the previous forecast of 1.7% in 2020.

"What the European Commission is saying is change, it is a growth of 0.1%," he said, admitting, however, that it is better for the revision to be upwards than downwards.

For the leader of the PSD, the most relevant is "the future prospects and there is a great caution on the part of the European Commission".

"We will soon have the State Budget, where we will see the macroeconomic framework that the Government presents and see if it is in tune or out of tune with what was presented in the election campaign, perhaps more prudent," he predicted.

Asked if higher economic growth makes the task of opposing it more difficult, Rio considered that “this is evident” as a general principle.

"But even when the economy grows less, if a government is balanced and sensible it has ways of explaining what it is doing, and when it grows a lot it can also be making a lot of mistakes, as was the case in the previous legislature," he said.

In the autumn economic forecasts released today in Brussels, the EU executive estimates Portugal's Gross Domestic Product (GDP) to grow 2% this year, above the previous 1.7% estimate released in July and a tenth above the government's forecast. .

However, the Commission notes that "the expected pace of moderation in summer still seems likely, although it is now starting from a higher base".

For 2020, the European Commission kept the forecast for the growth of the Portuguese economy at 1.7%, lower than anticipated by the Portuguese executive.

In the Draft Budget Plan sent to Brussels on 15 October, the Government estimated that the Portuguese economy will slow from 2.4% growth in 2018 to 1.9% growth in 2019 and accelerate again to 2% next year.

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