Portugal has revised upwards the government’s budget deficit for 2010 as the addition of highway charges boosted the figure, worsening the position of the debt-burdened economy, according to Bloomberg. On Friday, the National Statistics Agency revised Portugal’s 2010 budget deficit up to 9.1% of gross domestic product from 8.6% previously reported, which puts the figure further away from the 7.3% target that had been set.
Meanwhile, yields on bonds from Greece, Ireland, and Portugal all rose to record highs in the latest week as the cost to insure securities against default jumped. The key driver of the ongoing negative sentiment over the peripheral eurozone economies is “speculation about possible Greek restructuring,” according to Michael Leister. He added that “The negative review for the U.S. sovereign rating added to the pressure, reminding investors again that the sovereign debt issue is serious and here to stay for the foreseeable future.”
