15/11/2024
GOOD NEWS about Portugal 🇵🇹
Brussels backs Portugal’s 1.7% growth forecast
The European Commission is less optimistic about Portugal’s economic outlook than the Portuguese government. While the Portuguese government forecasts growth of 1.9% in 2024 and 2.1% in 2025, the Commission expects robust GDP growth of 1.7% this year, 1.9% in 2025 and 2.1% in 2026.
These figures are well above the EU and eurozone averages. The Commission forecasts the eurozone economy to expand by 0.8% in 2024 and by 0.9% in the EU, with further improvements in the coming years.
According to the report, economic activity in Europe is starting to recover after a period of stagnation, particularly noticeable in Germany, where GDP is expected to contract by 0.1% this year.
In the area of public finances, the Commission predicts a budget surplus of 0.6% of GDP for Portugal this year, falling to 0.3% by 2026. Portugal's debt, despite its high level, is gradually falling and is expected to be below 100%, reaching 90.5% in 2026.
As for inflation, the Commission expects it to be 2.6% in 2024, falling thereafter. Unemployment will also decline, reaching 6.2% by 2026.
Overall, the Portuguese economy will gradually improve, supported by private consumption and investment, with investment expected to pick up in the coming years.
