Portugal news - What is Portugal’s economic outlook for 2023 and 2024? In September 2023, Moody’s placed Portugal in the spotlight by highlighting the country’s performance compared to other European countries.
Portugal is of the three European countries registering a boost in real GDP growth, along with Cyprus and Greece. Moody’s has just stated that Portugal should register a growth 0.5 pp by 2026 followed by a growth of 0.3 pp by 2030. This positive outlook is due to Portugal’s economic, fiscal and banking reforms.
According to Moody’s, Portugal’s debt situation is improving as measured by the country’s debt to GDP ratio, as Portugal’s debt fell by 3 pp compared to 2019. Portugal’s performance is impressive compared to other European countries since the aggregate debt burden in the Euro Zone is seven pp higher than pre-pandemic levels in 2022.
Portugal is part of a very small number of advanced economies that in 2024 should have a debt to GDP ratio below what they registered in 2019.
Portugal’s positive economic outlook for 2023 and 2024 is mainly due to significant public and private investment, together with additional structural reforms in the context of the Next Generation EU program. Moreover, Portugal’s immigration policies should ensure that, in the coming years, there will be an increase in the number of people of working age, that will also positively impact the country’s economy.
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