Portuguese economy news – Portugal’s economic forecast for 2024 is extremely positive since the country’s rating has just been upgraded to an A by three major ratings agencies, namely Moody's, Fitch and DBRS.
What is Portugal’s economic forecast for 2024?
Portugal’s economy is growing at unprecedented levels and has just jumped 2 levels according to Moody’s new rating assessment. Portugal is now rated A3 with a stable outlook by Moody’s, that is its best record since 2011. Moody’s forecasts that the Portuguese economy will grow at an average rate of 2% over the next 5 years.
Portugal’s impeccable credit rating will make it possible for the country to have access to lower interest rates and to a larger number of international investors. This is supported by Moody’s assessment of the Portuguese economy that highlights the positive medium-term effects of “a series of economic and budgetary reforms, the deleveraging of the private sector and the continued strengthening of the banking sector".
Portugal’s new achievement demonstrates that its economic fundamentals are robust and places Portugal among the group of countries with higher credit quality and greater international credibility.
The country has embarked on significant public and private investments, supported by the EU Recovery and Resilience Plan. Increased investments are matched by the country’s ability to attract foreign talent and thus increase productivity despite the population aging trend that dampens other advanced economies.
Portugal’s A level rating means that the country will have access to a greater number of international investors that will lower the cost of financing the economy and will result in lower costs for taxpayers. It is expected that this will also reduce private sector financing costs and will ultimately benefit families and companies.
Portugal is now recognized as a country that has carried out a sustained reduction in fiscal deficit through a trajectory of marked economic growth. The country’s economy has demonstrated its resilience and competitiveness, with a low credit risk and a positive economic outlook for the next five years.