Portugal economy 'to improve further'
The Portuguese economy looks set to improve further as the country's government attempts to slash its deficits, according to a recently published report.
Moody's Investors Service has said that although Portugal's deficit is the highest among the Eurozone economies, the fact that it is actively taking measures to reduce this bodes well for the future.
Furthermore, with long-term structural reforms and improved management of the economy, investors in the region may wish to know that the company has rated government bonds with a "stable" Aa2 mark.
Sara Bertin-Levecq, author of the report and vice-president at Moody's, remarked: "Although the government debt ratio has increased, with substantial deficits running since 2001, the general government debt ratios are reasonable and there is broad political consensus to improve the fiscal stance, which contains rigidities."
She added that the government's deficit should continue to fall given the European Commission's strict deadline that it should be cut to 3% by 2008.
Among Portugal's major trading partners are the UK, Spain, Germany and France, according to the Foreign & Commonwealth Office.
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