This Wednesday, Mario Senteno, Governor of Porto de Portugal, said that “there is more uncertainty about the short duration of February and March than the end of this year,” given the prospects for the evolution of the Portuguese economy. Due to the expected impact of imprisonment implemented in the country.
But the governor said the current imprisonment would lead to a decline in Portuguese gross domestic product (GDP) and the 16% decline recorded in the first quarter of 2020 would be deep. According to Senteno, January indicators do not point to the fall of “this magnificence”.
In an interview with RTP3, he said that by the end of 2022, the Portuguese economy would only be able to recover from the quarterly growth recorded in 2019, before the health crisis.
“We have all the conditions to believe in this recovery, especially since funding (…) is available,” he said.
He recalled that this was a “temporary crisis” and not a structural crisis.
“Policies need to focus on where the crisis is today,” he argued, adding that “its impact is not the same in all its areas.”
“Monetary policy is not the best way to do this,” he said.
Senteno said the economy has responded very favorably to the various waves of the epidemic and that all estimates have been revised upwards. In all “inconsistencies, the reaction of the economy was spontaneous and very strong.”
The Governor recalled that the International Monetary Fund (IMF) yesterday announced that it was revising its estimates for the growth of the world economy.
Since Europe released its general debt in 2020, “he also recalled the importance of the decision-making environment in Europe.
On the situation surrounding rising Portuguese public debt, Senteno advocated that it be reduced. “Portugal needs to restart the debt path in a declining plan,” the governor said.
The governor also warned that “the economic crisis we can not allow to pass the financial crisis.” “We must be very careful and vigilant in this dimension, and this danger will always be hidden,” he warned.
Senteno’s position coincided with a warning issued Wednesday by the International Monetary Fund calling for measures to avert a new financial crisis.
Updated at 00h37 with more information