Portugal budget balance goal at risk after storm costs
Economy Minister Manuel Castro Almeida says storm damage totaling 0.6 percent of GDP makes a balanced budget difficult. The government still expects growth.
Portugal faces difficulty achieving a balanced budget this year after severe storms caused €2 billion ($2.3 billion) in damage. The costs represent 0.6% of GDP and follow government projections of a balanced budget. This fiscal pressure threatens the country's recent track record of debt reduction and budget discipline.
### Storm Costs Erode Fiscal Surplus Severe storms and floods hit central regions during January and February. Economy Minister Manuel Castro Almeida told parliament on Friday that the €2 billion cost includes infrastructure repairs and lost tax revenue. The government previously lowered its budget forecast from a 0.1% surplus to a neutral balance three weeks ago.
