Portugal top 3 for the strongest growth

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Portugal is, along with Ireland, the third country with the highest growth rate this year among eurozone peers, according to the European Commission’s winter macroeconomic forecast.

According to interim forecasts, Portugal’s gross domestic product (GDP) will grow by 5.5% this year, like that of Ireland, exceeded only by forecasts of expansion of 6% for Malta and 5.6% for Ireland. ‘Spain.

Considering the 27 member states of the European Union (EU), the predicted rate for Portugal is also equal to that for Poland.

On the other hand, Belgium (2.7%), Finland and the Netherlands (both with 3%) are the countries with the weakest growth forecast for this year.

The European Commission today revised the growth of the European economy for this year down to 4% of GDP, both in the euro zone and in the EU, due to the winter slowdown caused by the Omicron variant .

After having, three months ago, in the autumn forecast, anticipated GDP growth of 4.3% this year both in the single currency space and in the bloc as a whole, the Community executive considers now, in the winter interim forecast published today, growth of 4% in both cases, predicting that in 2023 the pace will slow to 2.7% in the euro zone and 2.8% in the EU.

In contrast, Brussels is slightly more optimistic about the growth of the Portuguese economy, improving its growth projections by 0.2 percentage point to 5.5% this year and 2.6% in 2022.

Brussels’ forecast for this year is in line with the government’s estimate, which calls for GDP expansion of 5.5% or more.

Brussels explains that the resurgence of Covid-19 infections at the start of the year, as well as a further decline in the international travel market, are expected to slow Portugal’s economic growth to 0.5% in the first quarter.

However, he points out that, “assuming an improvement in pandemic conditions, growth is expected to pick up in the second quarter as the economy reaches its pre-pandemic level.”

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