Portugal budget deficit narrows to 3.8pc/GDP in year to end-Q1

LISBON: Portugal's budget deficit narrowed to 3.8 percent of gross domestic product in the 12 months ended in March from 4.4 percent at the end of last year, the National Statistics Institute said on Friday.

In the first quarter alone, the deficit fell to 3.2 percent from 5.5 percent a year earlier, it said.

The Socialist government has vowed to cut the deficit to 2.2 percent this year, although the European Commission expects a higher deficit close to 3 percent and says additional budget measures may be required to meet the 2.2 percent target.

Last year, the gap, which included the state rescue of Banif bank, was well above the 3 percent European Union threshold for excessive deficits.