This report examines the changes in the international and Portuguese economies, as well as fiscal developments in the general government sector in the first half of 2015. The analysis by the Portuguese Public Finance Council (CFP) is based on the macroeconomic statistics published by Statistics Portugal (Portuguese Statistical Authority, INE henceforth) on 23 September and on the non-financial and financial general government quarterly accounts published on 23 September by the INE and 1 October 2015 by the Bank of Portugal (BoP), respectively. This report also includes a brief analysis of the major general government deficit and debt revisions shown in the second Excessive Deficit Procedure notification.
To provide a more accurate analysis of the fiscal position, general government revenue and expenditure have been corrected for items that do not have a permanent impact on borrowing requirements. In this way it is possible to evaluate the actual consolidation effort, by monitoring the structural changes in the aggregates and assessing the fiscal policy stance.