Portugal given more time by EU/IMF to meet deficit goals

  • The European Union and IMF have agreed to ease budget targets imposed on Portugal under a $100 billion bailout, Finance Minister Vitor Gaspar announced on Tuesday.

    Under the revised targets, Portugal can now post a budget deficit of 5 percent of GDP this year, 4.5 percent in 2013 and 2.5 percent in 2014.

    Previously, the bailout had set deficit targets of 4.5 percent this year and 3 percent in 2013.

    The move gives Portugal more time to meet the goals as the country’s economy plunges deeper into recession.

    According to Gasper, the recession is expected to be deeper in 2013, with GDP dropping one percent after plummeting by 3 percent this year.