European Commission foresees more than a 2.5% growth for 2017

“We want to turn Portugal into a tremendously successful story“, states Pierre Moscovici, commissioner for Economic and Monetary Affairs, this Thursday, in Lisbon. The European Commission’s willingness to support Portugal is shown in the assessment the commissioner makes of Portugal: he believes the country is evolving “very positively in the budgetary and economic plan” and that the strategy to handle bank’s NPL is “ambitious and going in the right direction”. Economic recovery is supported by structural factors and the country should grow more than 2.5% in 2017, Moscovici states.

“Growth will probably stand above 2.5% in 2017“, anticipated Pierre Moscovici, making a strong upward revision of EC’s May forecasts, which was 1.8% GDP. The commissioner recalled the GDP increase of 2.8% in the first quarter of 2017 and pointed to a lasting recovery: “I think this growth will last because there are structural factors supporting it”. Moscovici emphasized the “return to investment” and the “boom in tourism”, and also stated the Euro Area growth will help the Portuguese economy.

The Portuguese economy is an economy we can trust.

“I feel very optimistic, I am impressed. The Portuguese economy is living a soundness moment and it taking a strong path”, Moscovici reinforced. Portugal’s budgetary plan is also regarded as “very positive”. Moscovici recalled the deficit was reduced from 11% in 2011 to 1.8%, and “markets and partners know that Portugal is a serious and reliable country”.

As for the strategy to reduce banks’ NPL, Moscovici assesses it as “good”, adding the “ratio of non performing loans is decreasing” and that “the Portuguese authorities’ strategy is ambitious and heading the right way”.

Even so, the commissioner argued that “the efforts should move forward in reducing the structural deficit”, because only then can the economy recover and long-term debt be reduced. This means that it is not enough to comply with nominal goals (which is heading the right direction): Portugal needs to be credible in its deficit reduction.

To conclude, Pierre Moscovici stated: “The Portuguese economy is an economy we can trust“.