Lusa - Business News - Portugal: Economy heats up, 4.4% growth this year, 5.1% in 2022

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Lusa - Business News - Portugal: Economy heats up, 4.4% growth this year, 5.1% in 2022

Washington, Oct. 12, 2021 (Lusa) - The Portuguese economy is expected to grow 4.4% this year and 5.1% in 2022, slowing the pace of growth to 1.8% in 2023, according to upward revisions from the International Monetary Fund (IMF) published on Tuesday.
According to the World Economic Outlook published today, which increases expected growth for 2021 from 3.9%t in April, the IMF also points to the Portuguese economy growing 4.8% in the fourth quarter of this year and 2.3% in the fourth quarter of 2022.
The forecasts contrast with those published today by the government as part of the budget, which point to a growth of 4.8% in 2021 and 5.5% in 2022.
As for inflation, the Washington-based institution points to one-tenth growth per year shortly, starting at 1.2% this year, 1.3% next year and culminating at 1.4% in 2023.
Government forecasts for price increases point to stabilisation at 0.9% in 2021 and 2022.
The IMF also expects the Portuguese current account balance to be -1.7% of Gross Domestic Product (GDP) this year, -2.1% of GDP in 2022, and will reach -1.1% in 2026.
Last week, Banco de Portugal maintained its economic growth outlook at 4.8% for 2021, similarly to what it had done in the June Economic Bulletin.
Besides the government, the Banco de Portugal continues to be the most optimistic entity regarding the evolution of the national economy this year, followed by the Public Finance Council, which expects growth of 4.7% for this year.
The European Commission points to growth of 3.9%, and the Organisation for Economic Cooperation and Development (OECD) expects growth of 3.7%.
Banco de Portugal's forecasts for 2022 are not yet known, but the OECD is pointing to growth of 4.9%, and the European Commission and the Public Finance Council also expect 5.1%, like the IMF.
JE/ADB // ADB.
Lusa

Agency : LUSA
Date : 2021-10-13 09:42:45

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