LISBON: The International Monetary Fund (IMF) has lowered its economic projections for Portugal, and expects growth of 1% of gross domestic product (GDP) this year, compared to a forecast of 1.4% in April. In the World Economic Outlook published on Monday, including updated projections for economies around the world. The IMF estimated that Portugal’s gross domestic product (GDP) would grow by 1.1% in 2017, compared to a previous estimate of 1.3%.
The projections are less optimistic than the Portuguese government’s as included in the 2016 State Budget, which stipulates economic growth of 1.8% this year. However, Prime Minister António Costa, said on Monday in an interview with daily newspaper Público that GDP may grow by just over 1% this year. The IMF expects inflation of 0.7% this year and 1.1% in 2017. By 2021 the Portuguese conomy should record growth of 1.2% (lower than the Euro Zone average of 1.5%), and inflation of 1.8% (1.7% across the Euro Zone).
