The Portuguese economy is expected to grow by 2.4% in 2023, more than 1.1% in the Eurozone (and 1% in the European Union). Brussels is much more optimistic than in February, when it estimated an expansion of 1%.
The Portuguese economy is expected to grow by 2.4% in 2023, anticipates the European Commission in the spring forecasts published this Monday. The new projection is much more optimistic than the 1% expansion estimated in February and, if confirmed, means that the Portuguese economy will grow more than twice that of the euro zone (1.1%) and that the European Union as a whole ( 1%).
The new forecasts from the European Commission also point to an inflation rate of 5.1% and an increase in unemployment in 2023 from 6% to 6.5%. In 2024, however, it is believed that the unemployment rate will drop again, to 6.3%, the year in which the Gross Domestic Product (GDP) slows down to growth of 1.8% and inflation falls to 2.7%.
“After a strong recovery at the beginning of 2023, economic growth should weaken in the second quarter of this year and accelerate again thereafter,” says the European Commission in a commentary adding that “tourism continues to support economic growth” in the country The European Commission also highlights the importance of the increase in exports, which offset the “weakened” domestic demand due to the rapid rise in interest rates.
(in update)
Source: Observadora
