By Sergio GoncalvesLISBON (Reuters) - The resignation of Portugal's prime minister will trigger instability that could delay economic reforms, while making it harder for the country to keep a balanced budget and further reduce debt, bankers warned on Thursday.
The government remains fully functional for the time being, at least until parliament has had its final vote on the 2024 budget on Nov. 29.
He said reforms should create an environment for companies to achieve better results and compete more effectively globally.
The 2024 budget projects economic growth will slow to 1.5% in 2024 from 2.2% expected this year and political instability may also delay public investment, such as using COVID recovery funds, and private investment.
"Probably no one wants to invest when there is great instability," said Pedro Castro Almeida, CEO of Santander Portugal.
Persons:
Sergio Goncalves LISBON, Portugal's, Antonio Costa, illegalities, Marcelo Rebelo de Sousa, Antonio Horta, Osorio, Miguel Maya, Pedro Castro Almeida, Paulo Macedo, Sergio Goncalves, Catarina Demony, Mark Potter
Organizations:
Credit Suisse, Lloyds Banking Group, Santander Portugal, Caixa Geral
Locations:
Lisbon, Portugal, Horta, Caixa, Depositos