Lisbon, June 15, 2026 (Lusa) - The Bank of Portugal forecasts a deficit of 0.2% of GDP this year – a more cautious outlook than the government’s forecast of a balanced budget – and a deficit of 0.5% in 2027 and 2028.

According to the Economic Bulletin released on Monday, this projection reflects the “incorporation of new measures, as part of the housing package (0.1% of GDP), support for households and businesses affected by the storms and the resulting reconstruction costs (0.4% of GDP), and measures to mitigate the rise in energy prices (0.1% of GDP)”.

“Despite the deterioration in the budgetary situation, Portugal remains one of the few countries in the euro area with a budget balance close to zero or in surplus,” the document states.

The central bank’s estimates indicate that public debt will continue to decline, falling to 85.7% of GDP this year, 82.5% in 2027, and 79.5% in 2028.

MES/ADB // ADB.

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