Source: Freepik Author: Redaction The Coimbra City Council closed the year 2023 with a loss of 16.4 million euros , a negative net result justified by the constitution of provisions associated with ongoing legal proceedings. Thus, the municipality’s indebtedness capacity grew, with a management balance set at 16.7 million euros , due to the reserve of values that were used for potential compensation in ongoing legal proceedings and that may force the municipality to have to pay them. These are data contained in the accounting documents of last year, approved at the meeting of Monday, April 15, of the executive, which had abstained from the CDU and the PS, with José Manuel Silva, president of the municipality, to declare that this deficit is in line with a national trend towards inflation and price revisions. Against this backdrop, Coimbra City Council Councillor for Finance Miguel Fonseca says: the indicators confirm the financial stability of the municipality, the low dependence on external financing, the net worth as the main source of financing of the asset and the great ability to repay debts both in the short and medium and long term , he indicates. The investment expenses of the municipality result from a current saving of around EUR 16,3 million , as well as a revenue execution rate of 92,1%, which shows strong rigor in management and results from the permanent monitoring of budget execution, observed throughout the year . However, the debt capacity rose from 23.4 to 24 million euros, however, the councilman attests to the the financial stability of the municipality , the low dependence on external financing, the net worth as the main source of financing of the asset and the great ability to repay debts both in the short term and in the medium term. Also follow: Portuguese companies have record values of financial autonomy and Strategic investments will have new incentive system
Source: Freepik Author: Redaction The National Institute of Statistics revealed this Tuesday, April 16, an increase in the tax burden, in nominal terms. This is 8.8% growth, which has set the figure at EUR 95 billion. However, the ratio fell from 36% to 35.8% of GDP, and the Portuguese economy grew more than the tax burden. The INE note reads that revenue from direct taxes increased by 10.7%, mainly reflecting the evolution of income from personal income tax (IRS), which grew by 9.4% , and adds: as for revenue from corporate income tax (IRC), this grew 13.9%, continuing to benefit from the behavior of the Portuguese economy in 2023. In this follow-up, there was an increase in direct taxes with growth of 5.5%, with greater expressiveness of VAT and PSI, with the aggravating of high inflation. On the other hand, effective social contributions grew by 11.7%, reflecting, in particular, the growth of paid employment, wage upgrades and the rise in the minimum wage. The institute also adds that the tax revenues of General Government have been set at 95 billion euros, increasing about 7.7 billion euros compared to 2022, a development that benefited from growth of 2.3% in volume, GDP and the context of high inflation. Despite the indicators, nominal fiscal and contributory revenue growth, which stands at 8.8%, was lower than GDP (9.6%) , while the ratio decreased from 36% to 35.8%, with GDP growing faster than the economy for the first time since 2019, which places Portugal as the country where the tax burden is lower than that of the European Union, which stood at 40.0%. Discover also: Portugal is the country most impacted by the ECB’s monetary policy , Insolvencies increased 19.5% in the 1st quarter of the year
Source: Freepik Author: Redaction Eurostat confirmed on Wednesday, April 17, the slowdown in the annual inflation rate of the Eurozone in March, which stood at 2.4%. In February, this rate had been 2.6%, which represents a drop of 0.2 percentage points. In the European Union (EU) the scenario was also one of fall, with the annual inflation rate going from 2.8% to 2.6%. According to the official European statistics office, annual inflation fell in 13 EU Member States compared to February , showing stability in four and rising in ten. For Portugal, the annual change in the harmonised consumer price index in March stood at 2.6%, similar to the EU average , and above the euro area average. Compared to February, this is also an increase. On the other hand , the lowest inflation rates in March were in Lithuania, with 0.4%, in Finland, with 0.6%, and in Denmark, with 0.8%. Romania, Croatia, Estonia and Austria had the highest inflation rates, with 6.7%, 4.9% and 4.1% in both countries, respectively. Read more: BdP reveals that bad loans are at a minimum , Insolvencies increased 19.5% in the 1st quarter of the year and Households in the Eurozone are saving more compared to 2022
Source: Freepik Author: Redaction It was in its latest Global Financial Stability Report that the International Monetary Fund (IMF) warned of interest rate cuts in the first chapter, advising central banks to remain on alert until the disinflation process was overcome. This is a piece of advice that contradicts the optimistic outlook of financial markets, which anticipate the end of inflation and a possible easing of restrictive monetary policy. Nevertheless, the IMF technicians act with caution , considering that the various challenges that still remain, namely geopolitical tensions and pressures on the real estate market, may increase risk for some lenders, especially with the ongoing problems in China’s real estate market, the report notes. Thus, although inflation slowed rapidly on a global scale, the trend began to diverge in countries such as the US, the UK, South Africa, Italy, Germany and France, inflation expectations for the coming years began to show signs of rising. Kristalina Georgieva, president of the IMF, makes it clear that this phenomenon may jeopardize the expectation of a continuous disinflation, with projections indicating that future inflation in large economies may not slow down quickly, remaining above central bank targets . This is a message that goes against what the President of the European Central Bank (ECB), Christine Lagarde, and the President of the US Federal Reserve, Jerome Powell, had already advocated after the meeting of the Monetary Policy Councils. The discrepancy between the instability in asset prices and the political and economic uncertainty felt are also another of the warnings left by the IMF , which considers that it can anticipate increases in volatility due to negative and unforeseen shocks in inflation, with potential to shake the forecasts of falling interest rates. All of this could result in a correlated sale of assets, tightening global financial conditions and especially affecting emerging markets, which face disproportionately high refinancing rates, the IMF technicians said. The indication left by the IMF is therefore that the banks should wait, avoiding premature easing of the monetary policies in force so that they do not have to move backwards afterwards: instead, they should combat investors overly optimistic expectations of easing monetary policy, in order to be able to ensure a stable transition to a less restrictive monetary policy, they conclude. Keep abreast: Portugal is the country most impacted by the ECB’s monetary policy
Source: Freepik Author: Redaction COSEC - Credit Insurance Company released on Monday data on insolvencies in Portugal, which skyrocketed in the first quarter of this year. According to the insurance company, the number soared 19.5% and it is micro-enterprises, that is, those that employ less than 10 people, who represent a larger share of the total (67%) , between the months of January and March. More than half of the insolvent companies, representing 52% of the total, have been in business for at least ten years, and it is in the large metropolitan areas that this trend is most evident, with Porto and Lisbon at the top of the analysis. According to the data, it is in Porto that the largest number of insolvent companies (182 companies) and also the largest share of companies in default of their obligations are located. This is a 42% increase over the same period last year. Next is Lisbon, with 120 companies in this situation , which represents an increase of 34% compared to the first quarter of 2023. Also during the first quarter period, it was the services sector that verified more insolvency situations, with 133 cases reported, followed by the textile sector, which changed position with the retail sector, and also the construction sector. Also accompany: Tourism revenues: February registered an increase of 276.4M€ , Portugal is the country most impacted by the monetary policy of the ECB and Portuguese companies have record values of financial autonomy
Source: Freepik Author: Redaction The European Central Bank (ECB) is preparing to lower interest rates for the first time since 2019 and the conditions for easing restrictive monetary policy are in place . Inflation is gradually approaching 2%, a target set by the central bank, and economic activity remains fragile, which also implies greater confidence in the control of these factors, preventing side effects caused by the development of wages and commodity prices. Still, the cut should be coming soon, with a strong consensus on the part of the bank , with everything pointing to the first interest cut in the Eurozone being made in June. The last intervention to proceed to the interest cut was in September 2019, when the deposit rate was set at -0.5% . Consecutively, interest reached all-time lows until July 2022, and then a series of 10 consecutive increases, driving interest rates up by 450 basis points. According to the ECB, we will know a little more in April, but we will know much more in June , and, according to the available data, inflation fell to 2.4% in March, reaching a low since July 2021, and may continue to fall in the coming months. On the other hand, economic activity remains stagnant, although signs of improvement were shown in March. The GDP of the Eurozone countries will only be known until 6 June, together with inflation figures for April and May , as well as wage developments, representing the moment when the ECB can confidently decide on a possible rate slowdown. Continue reading: Banks anticipate resumption of demand for housing loans , Households in the Eurozone are saving more than 2022
Source: Freepik Author: Redaction This Tuesday, 9 April, Eurostat , the European statistical office, released data on the household savings rate in the Eurozone, which grew compared to previous years. According to the analysis, in the fourth quarter of 2023, the rate reached 14.6 per cent, up from 13.9 per cent in the previous quarter and 13.3 per cent in the last quarter of 2022 . The household savings rate in the Eurozone is therefore double that of Portuguese households, which stood at 6.3 per cent. In Portugal, contrary to the trend in the Eurozone, households have not been able to increase their savings in relation to disposable income, remaining at a level far removed from the highs seen during the pandemic, of 11.9 per cent and 10.6 per cent. For the second year running, the savings rate in Portugal remained at 6.3% of disposable income , according to figures from the National Statistics Institute (INE) published on 25 March. The household investment rate has also fallen, as Eurostat figures show, with the rate dropping from 9.8 per cent to 9.7 per cent in the fourth quarter of 2023. Business profit at non-financial institutions in the Eurozone, on the other hand, fell from 40.5 per cent to 40.3 per cent, the lowest figure since the fourth quarter of 2020, while the business investment rate in the euro rose slightly, from 22.6 per cent to 22.5 per cent. Also read Portuguese companies have record levels of financial autonomy , AT statistics show that household incomes have risen or National public debt fell again in February
Source: Freepik Author: Redaction The Portuguese Tax Authority (AT) has released last years income statistics for 2022, making it possible to analyse the income earned by families that year , as well as the number of households that had to pay IRS or didnt even declare income. According to the statistics, in 2022, 5,807,704 Portuguese families submitted their annual income declarations to the IRS. Of this total, 42.4 per cent didnt have to pay IRS , which represents a universe of more than 2 million taxpayers exempt from paying the tax. The remaining 57.6 per cent had to pay 16,292 million euros , representing revenue for the state of 1,462 million euros more than in 2021, and 3,132 more than in 2020. It was also possible to conclude that, in 2022, only 70,000 households earned more than 100,000 euros gross per year . With regard to the distribution of the number of households with IRS paid, divided by income brackets, 74.2 per cent declared a gross income of between ten thousand and 40 thousand euros. But it was households with gross incomes between 13,500 euros and 50,000 euros that paid the highest percentage of the tax, which represents 7,022 million euros. The remaining revenue comes from households with incomes of more than 50,000 euros, with the tax paid in 2022 by this total of families reaching 7,789 million euros, or 48 per cent of the tax assessed and 986 million euros more than the same year last year. Number of families submitting tax returns is up According to AT data, between 2020 and 2021 the number of families who filed their tax returns increased by around 6% and, between 2021 and 2022, the growth was around 4.17%: this growth in the number of tax returns is due to the 3.35% increase in Model 3-1 tax returns [dependent work and pensions only], and the 5.78% increase in Model 3-2 tax returns [dependent work, pensions and other income], the AT states. It was also possible to conclude an increase in gross household income , with more families earning more than 100 thousand euros. In 2022, gross income rose by 9.25 per cent, the year in which the national minimum wage was increased by 40 euros. Read more: Inflation in Portugal rose 2.3 per cent in March, above the EU average , More than 400,000 personal income tax returns have already been submitted
Source: Freepik Author: Redaction According to a study by the Collaborative Laboratory for Labour, Employment and Social Protection (CoLabor) published this Wednesday, there is a noticeable difference between real wages and productivity, especially in the tourism and real estate sectors. According to the data, real wages are growing at a slower rate than productivity . Frederico Cantante, researcher at CoLabor, professor at ISCTE and author of the study, points out: with regard to the relationship between wages and productivity, it can be seen that, since 2013, the average real earnings of workers have evolved below the average real productivity, with the exception of 2020, the year in which the Covid-19 pandemic had pronounced economic impacts. Thus, between 2013 and 2022, real wages increased by 10.6 per cent compared to 18.7 per cent for real productivity, with a difference of 8.1 per cent between each indicator. The period following the Great Recession was, above all, marked by a mismatch between the evolution of wages and productivity and, looking ahead to 2022, it is possible to conclude that average real earnings have fallen, mainly due to historic levels of inflation. Even so, in that year, real productivity grew. In the national labour market, it is the accommodation, catering and similar sectors that stand out with the biggest gaps, which are particularly acute . On the other hand, in these sectors, average real earnings rose by 19.4 per cent, while productivity stood at 54.7 per cent, a difference of 35.3 percentage points. In real estate there was also a gap between the evolution of wages and productivity, with real earnings rising by 8.6 per cent compared to 43.4 per cent for productivity , a difference of 34.8 percentage points. Agriculture, animal production, hunting, forestry and fishing, as well as wholesale and retail trade, also saw differences, in addition to the motor vehicle and motorbike repair sector, with gaps of 25.2 per cent and 24.1 per cent respectively, both higher than the national average. Manufacturing industries saw their gains advance by 15.6 per cent compared to 26.8 per cent in productivity, a difference of 11.2 percentage points. In the opposite direction, the extractive industries saw a higher growth in earnings than in productivity, with a difference of 3.9 per cent. Among the sectors where at least one of the indicators fell, transport and storage and the electricity, gas, steam, hot and cold water and air conditioning sector stand out. In the former, productivity fell while average earnings rose, and in the latter, both productivity and real average earnings fell. Also find out about these topics: Inflation in Portugal rose 2.3 per cent in March , above the EU average , Older companies have the highest turnover and Wages in the Eurozone slow growth
Source: Freepik Author: Redaction According to Eurostat , in data shared this Wednesday, prices for goods and services rose across the board in the Eurozone, with a monthly increase of 0.8 per cent in March . Compared to February, this is a monthly rise of 0.6 per cent. In the euro area member states as a whole, Portugal recorded one of the highest increases, almost three times the European Union (EU) average of 2.3% in the inflation rate , based on the calculation of the Harmonised Index of Consumer Prices (HICP). This is a far cry from the second country in the Euro Zone with the highest monthly price rises, Greece, which recorded a rise of 1.8 per cent. Thus, the inflation rate in Portugal was above the EU average, due to food prices which, according to information from the National Statistics Institute (INE), saw a monthly increase of 0.86 per cent for processed food products and 0.28 per cent for unprocessed food products. Continue reading: National public debt fell again in February
Source: Freepik Author: Redaction Portugals public debt has returned to the downward trend it once recorded in December, after falling in January . The data published this Monday by the Bank of Portugal (BdP) shows just that, with a fall of 2.2 billion euros in February, bringing public debt to 268.5 billion euros. This development mainly reflected the reduction in debt securities (-2.0 billion euros), mainly long-term, and deposit liabilities (-0.2 billion euros), points out the BdP. The 6 billion euros that Portugal returned to the markets contributed to this reduction. On the other hand, general government deposits fell by 3.6 billion euros in February, leaving out public debt, which rose by 1.5 billion euros to 253.9 billion euros. Thus, despite the decrease in February, the debt remains above the value set in December 2023 , and the year closed with a public debt ratio of 99.1 per cent of GDP, below 100 per cent for the first time in 15 years. Read also: Portuguese bank profits soar to 5.6 billion
Source: Freepik Author: Redaction Last year was economically difficult not only for the Portuguese but also for most Europeans. The rise in prices, especially in the food sector, and the fall in purchasing power have forced people to adjust their budgets , as evidenced by the results of the European Barometer carried out by Cetelem - a commercial brand of the BNP Paribas Personal Finance group, sent in a statement to the SUPERCASA Notícias newsroom. With 66% of Portuguese saying that food expenditure has increased, there has been a change in peoples consumption habits and behaviour. 30 per cent have had to limit or even forgo spending on food due to lack of financial means. 44 per cent also claim to have given up certain products, such as meat or fish, and to buy fewer environmentally friendly products (46 per cent) , such as organic products. A further 29 per cent said they had eaten out less. In this context, the Portuguese also indicate that they are paying more attention to their food budget (84 per cent) and avoiding food waste (90 per cent). When it comes to shopping, 91 per cent of those surveyed say they are increasingly taking advantage of promotions and special offers and opting to buy products from cheaper brands (83 per cent). More than half of Europeans have stopped buying meat or fish The results of the study cut across all the countries that took part in the survey. More than half of Europeans (55 per cent) have stopped buying meat or fish in order to control spending on food. In addition, 42 per cent of European households have been forced to eat out less. Also, 81 per cent of European respondents say that they are taking greater advantage of promotions and low prices in order to save money this year. This trend is reflected in the market share of food retailers. But this category also includes reducing waste as much as possible (83 per cent), sticking to a budget (77 per cent) and, of course, switching to low-cost and hard-discount brands (58 per cent). Giving up organic products (49 per cent) is also part of this strategy, as is giving up meat or fish (47 per cent) and eating out less (35 per cent). These are some of the ways Europeans have found to make ends meet. Since, as the same survey has already revealed, other increases were felt, particularly in energy bills (66 per cent) and transport (52 per cent) last year. Household and personal goods were also affected, with rates of 54 per cent for clothing and footwear, and 52 per cent for furniture, household appliances, television and smartphones. If youre interested in following more current affairs topics like this, go to SUPERCASA Notícias and explore the available content.
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