Portugal news – While the IMF sees signs of economic recovery in Europe, Portugal’s economic growth is expected to be well above the EU average in 2025.
After revising upwards Portugal’s economic growth to 2.25% for 2025 in July, instead of its original estimate of 1.9%, the IMF just revised much higher its global economic growth estimate to reach 3.3% in 2025.
The IMF stated that shoots of economic recovery materialized in Europe and elsewhere, led by an improvement in the services sector. Since social-distancing restrictions eased after the pandemic, the demand for services shot up again. Easing financial conditions have led to higher investment while consumption is equally driven by rising real wages, according to the IMF.
However, IMF figures point to an asymmetric recovery in Europe with year-on-year growth for 2025 in Germany projected to reach 1.3%, compared to average growth in the euro zone that is expected to rise to 1.5% while Portugal’s GDP is expected to grow 2.25% in 2025.
The resilience of the Portuguese labor market and tourism growth could further boost Portugal’s economic growth, and the IMF predicted that the continued dynamism of tourism flows would support a current account surplus in the medium term, strengthening the sustainability of the Portuguese economy.
Portugal’s budget surplus together with its reduction in public debt confirm the Portuguese Government's positive macroeconomic outlook, even while Europe shows signs of economic recovery boosted by the services sector.