(BBG) Portugal’s Costa Pins Debt Strategy on a Rosy Growth Outlook

(BBG)

  •  Costa aims to reduce public debt to under 100% of GDP by 2023
  •  GDP growth already at half 2017 levels, forecast to slow more
Antonio Costa speaks after results during a general election night rally on Oct. 6.
Antonio Costa speaks after results during a general election night rally on Oct. 6. Photographer: Jose Sarmento Matos/Bloomberg

Amid cheering supporters on his election night, Portugal’s Prime Minister Antonio Costa went out of his way to reassure investors he has an ambitious target to tackle the country’s big Achilles heel, its towering debt.

The problem is that his strategy assumes robust economic growth, not a given in today’s uncertain world. The external climate is deteriorating fast and there are signs that job creation is slowing. Portugal’s four main export markets are within the European Union, where expansion is falling to around 1%, and whose biggest economy looks set to enter recession.You’ve reached your free article limit.Get unlimited access for $1.99/mo.View Offers