Portugal news - The IMF is revising upwards Portugal’s economic growth from 1.7% to 2% in 2024.
In a show of confidence in the Portuguese economy, the IMF has revised its forecast to be in line with Portugal’s Central Bank estimates.
The IMF has published its new economic outlook for Portugal and is now expecting a 2.25% growth in 2025, instead of its original estimate of 1.9% for 2025, as financial conditions gradually improve. The IMF also expects Portugal to register a slight budget surplus in 2024.
Portugal’s economy is driven by robust exports and strong private consumption that is supported by a resilient labor market, while public investment under the Recovery and Resilience Plan has boosted economic activity, according to Kristalina Georgieva.
In the medium term, Portugal’s fiscal stance is expected to remain broadly balanced, and this will ensure that the high debt continues to decline, thus increasing fiscal space to reduce vulnerability to future shocks. Moreover, the resilience of the Portuguese labor market and tourism growth could further boost Portugal’s economic growth.