The Minister of Finance stated that public debt reduction remains the government's top priority, projecting it to fall below 85% of GDP by 2027. The state budget proposal for 2027, already delivered to Parliament, forecasts 2.1% economic growth for 2027 and a 0.1% budget surplus.
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Finance Minister Joaquim Miranda Sarmento stated that Portugal aims to reduce public debt to 84.5% of GDP in 2027, with a long-term goal of falling below Germany's debt level by 2031. He defended the state budget proposal for 2027, acknowledging a reduction in global public investment compared to the previous two years, while noting that investment levels remain above the average of the decade preceding 2025.
The Minister of Finance presented the 2027 State Budget (OE2027) proposal, prioritizing the continued reduction of public debt, which is projected to fall below 85% of GDP next year. The proposal includes a 2.1% economic growth forecast for 2027 and a projected budget surplus of 0.1%.
The government's 2027 budget proposal projects the public debt-to-GDP ratio to fall to 87.5% in 2026 and 84.5% in 2027. Nominal GDP growth and the primary surplus are cited as the main drivers for the reduction, while interest spending and deficit-debt adjustments exert upward pressure.