Portuguese Economy expected to grow double that of the Euro Area

The European Commission revised the growth forecasts for Portugal upwards. Instead of 1%, Brussels now expects the Portuguese economy to grow 2,4% this year and 1.8% in 2024.

According to the new forecasts disclosed on Monday, Portugal will grow significantly above the EU and Euro Area average. Although the European partners also have better forecasts, the European Commission expects 1% growth for the EU and 1.1% for the single currency countries this year. For 2024, forecasts indicate 1.7% growth in the EU and 1.6% in the Euro Area. 

As for inflation, Brussels expects the rise in prices in Portugal to slow down this year, although a high amount is still forecast. The expectation is a harmonised price index of 5.1%, which matches the Government’s forecast.

Prime Minister António Costa claimed in a statement made during his official visit to Iceland that "we have good news for the economy, but that does not mean we can rest assured. Quite on the contrary, it must make us understand the following: just as with a bicycle, we either continue pedalling and the economy continues to grow, or else, if we stop, the bicycle stops too, or it might even topple over".

As such, "the solution is to continue pedalling so the economy yields good results, representing better quality of life for the Portuguese".

Portugal will have to "continue with high employment levels, as this is the best way for the economy to be reflected in people's everyday lives", he remarked.

The country must also "maintain its trajectory of recovering income, which is clear in the social dialogue agreement we signed in order to guarantee that at the end of this Government’s term in office, the Portuguese people’s wages increase their weight in GDP to 48%, i.e., the EU average".

The data indicate that Portugal must "continue adopting the same types of measures to fight inflation, cutting VAT, assistance to families, a rise in wages paid this month to civil servants and, in July, to pensioners".

António Costa also claimed that "continuing to sustain the income policies is of the utmost importance" and, at the same time "continuing to have the resources to improve the NHS or public schooling".

Updated at 17:15