Positive economic forecast

by Perfect Portugal

The International Monetary Fund (IMF) has improved its Portuguese GDP growth forecast this year to 1 percent.

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In the update of world economic forecasts, the IMF predicts that the Gross Domestic Product (GDP) will grow 1 percent this year and 1.7 percent in 2024, when in October it pointed to 0.7 percent in 2023 and 2.4 percent in 2024.

The IMF forecast for this year is in line with that of the European Commission and the Organization for Economic Cooperation and Development (OECD) and is set below the 1.3 percent expected by the Government in the State Budget for 2023 (OE2023) – which may be updated in the Stability Programme, delivered by April 15 – and 1.2 percent from the Public Finance Council (CFP) and 1.8 percent from the Bank of Portugal (BdP).

The Bretton Woods Institution also predicts that the inflation rate will reach 5.7 percent this year and 3.1 percent in 2024, when in October it pointed to 4.7 percent and 2.6 percent, respectively.

The forecast for this year is above the 4 percent indicated by the executive, approaching the 5.4 percent estimated by the European Commission, the 5.5 percent forecast by the BdP and the 5.9 percent by the CFP, below the 6.6 percent from the OECD.

The IMF also predicts that the unemployment rate will increase from 6 percent in 2022 to 6.6 percent in 2023 and to 6.5 percent in 2024.

According to forecasts, the IMF also expects the Portuguese current account balance to go from -1.3 percent to -0.8 percent this year and -0.7 percent in 2024.

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