These revisions imply a reassessment of the spending that governments can afford given a lower structural level of tax receipts. The European Commission’s estimate is that the “cyclical component” of the euro area government deficit will amount to about 1.4% of GDP this year and 1.9% next year. This is less than one third of the overall projected deficit!
CAR was kept at a high level of 15.6%; non-performing loan ratio was 0.61% which purported a continued good asset quality. Deposits amounted to MOP186.6 billion, loan-deposit ratio was 60.8%. At the moment, there is a change for the better in market operating environment which reflects a more optimistic market perspective.