The Public Finance Council warned on Tuesday of the risk of a lack of agreement between the parties to approve legislation relating to the milestones and objectives set out in the PRR, which could jeopardize the disbursement of some funds.
In a report on the economic and fiscal outlook published on Tuesday, the institution chaired by Nazaré da Costa Cabral listed among the internal risks to the forecasts associated with the new composition of the parliament, indicated “a possible lack of agreement between the different parliamentary groups regarding the approval of legislation relating to milestones and objectives.” established” in the Plan for Recovery and Resilience (PRR).
The Council of Public Finance (CFP) believes that “failure to approve this legislation could jeopardize the disbursement of some funds programmed under the PRR,” harming investments as well as the projected trajectory of the actual product.
In a policy-invariant scenario, the institute forecasts a slowdown in gross domestic product (GDP) growth from 2.3% in 2023 to 1.6% in 2024, followed by a recovery to 1.9% in 2025, 2.1% in 2026 year, followed by a 2% rate in 2027 and 2028.
This also indicates a continued budget surplus until 2028, although lower than in 2023: 0.5% of GDP in 2024, 0.6% in 2025, 0.1% in 2026 and 0.8% in 2027 and 2028.
Among the risks, he also names the persistence of inflation at values above the medium-term target, a new increase in prices for energy raw materials and disruption of global supply chains due to a possible escalation of conflicts in the Middle East. East and Ukraine, as well as continued lower-than-expected growth rates of the Chinese economy.
Conversely, it highlights as upside risks to the macroeconomic scenario a faster-than-forecast decline in inflation, easing geopolitical tensions, a faster-than-expected recovery of the Chinese economy, and additional productivity gains from contraction restrictions. about supply chains and global trade.
Author: Lusa
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.