The latest assessment of Portugal’s economy by the rating agency Moody’s is good news for the Lisbon government.
It kept the country’s credit rating unchanged at Ba1, which is just below investment level, with a stable outlook.
The annual analysis is decidedly optimistic with the conclusion that the recovery there should continue though risks remain, particularly from bank loans that are unlikely to be repaid, though it does highlight “a significant number of positive developments” this year to strengthen the stability of the banking sector.
It sees an increase in GDP growth to 1.7 percent in 2017, before moderating to 1.4 percent in 2018.
Moody’s is positive on recent efforts by Portugal’s socialist government to cut spending and boost growth though it said the high level of public debt remained a challenge.
Lisbon’s ration of debt to GDP is the second highest in the eurozone after Greece, but Moody’s said it will gradually decline though will still remain around 125 percent of GDP in 2020.
For the full Moody’s report, see:
Comments
Dear Editor,
I thought your job was to report news and not to distort it.
You thought wrong...
Ed's role is to keep us entertained with his often outrageous opinions on local and national events and people.
As for investing here, forget it, it's a closed shop, Portuguese only need apply.
Foreign investments in the news include Quinta de Ombria - 30 years delay in starting work, Vilamoura,, for sale again 'as is' after two years of US ownership, Vale de Freixo - dead in the water after years of delay, Comporta estate where the foreign investors were screwed by the Espirito Santo family and the 'establishement' with the collusion of the Luxembourg administrator, the list goes on. Portugal does not want foreign investment, it simply tolerates it.
Different for the oil industry though where Portugal has lain down and welcomed Portuguese and foreign money in oil exploration where, if oil is found and pumped, the State is on the worst royalty deal ever signed in modern times.
I conclude the word 'amateurs' is applicable to those who signed these concession deals with the collusion pf Paulo Carmona who no doubt will enjoy a long and luxurious retirement....
As for banking, soon the fur will fly at Novo Banco when the US vulture fund experts get stuck in...
Dear Editor,
I thought your job was to report news and not to distort it.
I was not distorting news, I was making a comment in the comments section,
"Commercial risk is fine within a legislative and fiscal framework - but if this is distorted to the benefit of local 'interests', outside investors should stay away"
was in the Comments section.
I can' t imagine anyone investing anywhere that has these conditions.
If investors judge a legislative and fiscal framework to be robust and functioning well, then they will be more inclined to invest.
Dear Editor,
I thought your job was to report news and not to distort it.
The US investment community is irritated at the lamentable behaviour of the Bank of Portugal in evaporating €2 billion in Novo Banco/BES loans. When a county's central bank says one thing and does the opposite, mature investors will leave well alone. Commercial risk is fine within a legislative and fiscal framework - but if this is distorted to the benefit of local 'interests', outside investors should stay away
If they were, they would be aware that the International Web Summit has taken place in Lisbon for the past two years and has been hugely successful. This type of event does not happen without Government co-operation and support at high level.
There is corruption at some level in every country, so why this financial individual from New York singled out Portugal for negative comments is beyond me, considering the amount of corruption there is in USA.
As one NYC financial mogul informed ADN this morning: "Everyone loves Portugal but most of us are loathe to do serious business there. The corruption at the top and the cooperation of government with the 'boys' doesn't encourage much trust. "