In the report of the IMF mission to Portugal under Article IV, the institution states that, after the 6.7% growth of the Portuguese economy in 2022, “significantly higher” than the 3.5% of the euro zone, “real GDP [Gross Domestic Product] growth is expected to slow down in the rest of the year to an average of 2.6% in 2023 and inflation to retreat to 5.6%”.
On the 11th of April, in the update of world economic forecasts, the IMF had pointed to a GDP growth of 1% for the Portuguese economy this year, predicting that the inflation rate would be 5.7%. The Government predicts a growth of 1.8% in 2023.
“High inflation and more restrictive financial conditions are weakening the economy”, maintains the IMF, considering that “the higher cost of living should penalise the growth of domestic demand and the lower global and euro zone growth should weaken the increase of exports”, leading to “growth stabilizing around 2% in the medium term”.
In The Portugal News