Governor of the Bank of Portugal is concerned about the increase in permanent State expenditure
Mário Centeno says that the country is experiencing a privileged economic situation, but the Governor of the Bank of Portugal also sees risks on the horizon. The financing of the new European budget cycle and the increase in public spending are concerns.
“The truth is that we, at this moment, live in a situation where for the first time in more than 15 years public savings will be reduced. In 2024 we have the largest increase in public expenditure that we have recorded since 1992. The increase in permanent expenditure creates a cyclical moment as advantageous as the one we have today, it creates problems for the future”, said Mário Centeno, Governor of the Bank of Portugal .
Some loss of participation in tourism was another of the issues mentioned in the Governor’s intervention at the Congress of the Hotel, Restaurant and Similar Association of Portugal.
Those responsible for this sector, meeting in Aveiro, are asking the Government for measures to recapitalize small and medium-sized companies and the application of the intermediate VAT rate to the entire food and beverage sector.
