The numbers place Portugal at a level not very different from that of the European Union. The country should grow 0.5% this year and 1.7% in 2024.
The United Nations (UN) predicts that the Gross Domestic Product (GDP) of Portugal grows 0.5% this year and 1.7% in 2024, according to the economic report released this Wednesday. The numbers, in general, place Portugal at a level not very different from that of the European Union as a whole, which is expected to grow 0.2% in 2023 and 1.6% next year, according to United Nations calculations.
These projections are part of the UN’s main economic report, the World Economic Situation and Outlook Report 2023, which also estimates that inflation will fall in Portugal to 6.2% in 2023 and 3.4% next yearranking above Spain, for example, which is expected to register inflation of 4.9% this year and 2.5% in 2024. Inflation in the European Union is expected to be 6.6% this year and 3.3% in 2024.
Regarding unemployment, the United Nations report estimates that the rate in Portugal will be set at 5.9% this year and 6% in 2024.
According to the report presented today, the organization expects a sharp slowdown in growth in most of the world’s advanced economies, in a context marked by inflation and high interest rates.
In the case of Europe, the UN highlights the impact of the war in Ukraine, with a drop in consumption and investment as a result of high energy costs, higher prices and unfavorable financial conditions.
This will cause many countries in the region to fall into a “mild” recession, according to the UN, which forecasts small economic contractions during 2023 in Germany, Italy, Greece, Austria, Denmark, Finland or Sweden.
In its report, the United Nations recalls that the GDP of several European countries continues to recover from the collapse suffered as a result of the covid-19 pandemic.
According to UN data, the Portuguese economy grew by 6.6% in 2022, after registering 4.9% in 2021 and a contraction of 8.4% in 2020.
In 2023, the organization expects inflation to moderate only gradually in Europe and warns that European monetary authorities must strike a difficult balance to ensure that their price containment measures do not exacerbate the economic slowdown.