Free Economic Weekly: Return to the Markets

The main novelty of this week is the portuguese return to markets with 10-year bond issuance. Investors have submitted bids well over the 3 billion euros being sold and the Finance Minister said this operation will allow a smooth exit from the financial assistance programme. The government has agreed with its official lenders on a new spending cut package to be implemented in 2013 after the Constitutional Court’s decision. The package should relate mostly to spending in the Central Administration, renegotiations of Public-Private partnerships and the redraft of some of the measures that were ruled unconstitutional. Unemployment rate was 17.7% in 2013 Q1. International trade in goods, considering the whole first quarter, recorded exports’ rise of 0.3%yoy and 4%qoq, whilst imports fell 7.2%yoy and rose 1.8%qoq.

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