The debt should then continue to decrease to 94.7% of GDP in 2033, the CFP said in a report released on Wednesday titled ‘Budgetary Risks and Sustainability of Public Finances’.

"The analyses carried out indicate a high sensitivity of the debt ratio to shocks to the rate of GDP growth and to the value of the primary balance," states the institution, which also warned of continuing "very significant" budgetary risks.

Growth that was one percentage point faster or slower could thus leave the debt as little as 71.6% or as much as 122%, respectively, in 15 years’ time, it stressed.

"The Portuguese economy has in recent years achieved macroeconomic and budgetary results better than those initially projected by national and international institutions,” it states. “However, very significant budgetary risks remain, and the CFP considers that the recognition of these risks and the attempt regularly to identify and quantify their impact is essential to the good management of public finances.”

Based on the medium-term growth projections it published in March, assuming unchanged policies, the CFP sees the public debt ratio shrinking from 125.6% last year to 123% this, to 119.4% in 2019, 116.4% in 2020, 109.9% to 2021 and 106% in 2022.