Portugal first-quarter budget deficit narrows sharply

LISBON – Portugal’s budget deficit narrowed to 0.4% of gross domestic product in the first quarter from 6.0% a year earlier, thanks to a strong economic expansion at the beginning of the year, official data showed on Friday.

Gross domestic product surged 11.9% year-on-year in the first quarter, buoyed by a recovery in the key tourism sector.

The government expects the budget deficit to fall to 1.9% of GDP this year from 2.8% in 2021.

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