The Portuguese economy will have in 2023 a “significant slowdown in activity“, warns the Bank of Portugal in the Economic Bulletin released this Thursday. In the report, the financial supervisor revises growth projections for 2022 upwards, to 6.7%but he also recognizes that inflation this year will be more intense than expected: 7.8%, peaking at “the end of this year”. To help ensure that inflation peaks at the end of the year, and not later, the Bank of Portugal stresses that the effects of rising prices are “differentiated” between different “segments” of the population and, therefore, therefore, the The government should only take “temporary and specific measures” to protect the “most vulnerable”.
As usual in the Economic Bulletin that the Bank of Portugal publishes annually in October, projections are not quantified supervisor of economic growth (or inflation) for the following year, because much depends on the State Budget, which will only be presented next Monday and will be voted on in the coming weeks. Even so, although it does not reveal specific figures, the Bank of Portugal already says that 2023 will be marked by a “significant slowdown” of economic activity compared to 2022.
In 2022, growth of 6.7% will be achieved -to be confirmed in the coming months- thanks to the recovery of tourism and private consumption. “The evolution of activity throughout the year is marked by the
recovery of the pre-pandemic level in the first quarter and by a subsequent slowdown, which translates into a Relative stabilization of the Gross Domestic Product (GDP)” as of the second quarter, says the Bank of Portugal.
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Source: Observadora
