It will be the first time that the Government will present a projection for the GDP expansion in 2022. The figure should be 2.1%, after a growth of 2.2% in 2021.

 

The Portuguese economy is expected to grow steadily between 2018 and 2020, in the projections of the Government. Following the greatest economic growth of this century last year, the expansion of the Gross Domestic Product (GDP) is expected to decelerate to 2.3% this year, but to continue at this pace over the next two years. The Economic Journal confirmed that the figures included in the preliminary version of the Stability Program show greater confidence of the Government in the economic growth of the country, compared to the State Budget (OE) for 2018.

 

In October, the Executive led by António Costa projected that in 2018, the economy grew 2.2%, after the 2.6% it estimated for 2017. Last year's GDP growth ended up at 2.7 %, with domestic demand (investment and exports) helping to expand the economy at the fastest pace since 2000. The Government is expected to revise its projection for this year and align with Banco de Portugal. The numbers, which are still provisional and can be updated until the Executive delivers the document to the Assembly of the Republic on Friday, are however more optimistic than those of the European Commission and the International Monetary Fund.

 

For the coming years, the projection of a 2.3% expansion is also an upward revision against the 2% that the last Stability Program anticipated for 2019. At the time, the expectation for 2020 was 2.1%, and now of 2.3%. In 2021, the Government expects a further slowdown in the economy, albeit slight. The projection of the Executive will be of GDP growth of 2.2%, in line with the latest estimate. For the following year, it will be the first time that the Government will present a projection, which should be 2.1%.

 

Source, Jornal Económico.