The European Commission’s spring economic forecasts, released this Wednesday in Brussels, show an improvement in Portugal’s economic growth for this year and 2025 from the previous February forecasts. The EU executive now expects the Portuguese economy to grow by 1.7% this year and 1.9% next year.
The European Commission's assessment underscores a nuanced understanding of Portugal's economic trajectory. This anticipated rebound is likely to be fueled by a combination of factors, including increased private consumption and investment activity.
In addition to forecasting economic growth, the Commission also emphasizes key trends in inflation and employment. It anticipates a continued decrease in inflation over the forecast horizon to 2.3% in 2024 and 1.9% next year.
This economic outlook is set against a backdrop of gradually improving employment rates and a relatively stable unemployment rate within Portugal. These dynamics suggest a complex interplay of factors shaping the country's economic landscape.
The European Commission also forecasts a budget surplus of 0.4% this year, higher than the Portuguese government’s own forecast, and a public debt ratio of 95.6%. Brussels predicts a continued increase in job supply, with the unemployment rate remaining stable at 6.5% this year and falling to 6.4% in 2025.
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