Portugal PM assures deficit to be below 2.5 pct of GDP

Portugal will manage to bring its deficit down comfortably below 2.5 percent of its GDP, the country's Prime Minister Antonio Costa said on Thursday.

"We are confident it will be below 2.5 percent (of GDP)," he said at the opening of the first quarterly debate in parliament.

"We promised an alternative that would respect our program, the positions of the majority that supports our government and the international commitments of our country, and that is what we are doing," Costa said.

Socialist Prime Minister Antonio Costa came into power in November last year and, together with the Left Bloc and Communist Party, whose parliamentary support he depends on, is preparing the state budget for next year.

Since taking power, he has promised to reverse austerity, increasing the minimum wage and restoring salaries and pensions.

Costa said on Thursday that while there was still a lot to be done, the priorities were now to fight social inequality and strengthen social welfare.

However, the International Monetary Fund (IMF) warned in a report on Thursday that the country was facing a slow-down due to its anti-austerity approach.

The IMF said it forecast growth would reach 1.0 percent this year, down from last year last's 1.5 percent, and predicted the budget deficit would be 3.0 percent this year. Endit