GDP still set to grow 3.9% this year, 5.1% next – EU
"The Portuguese economy is on track for a good recovery from the second quarter of 2021 onwards," the European Commission said about the country.
The European Commission on Wednesday maintained its projections for the pace of recovery of the Portuguese economy, estimating, as in the spring, growth of 3.9% this year and 5.1% next year, despite the worsening of the epidemiological situation in the country.
In the summer economic forecasts published this Wednesday, Brussels repeated the spring projections for Portugal, released on May 12, considering that “the Portuguese economy is on track for a good recovery from the second quarter of 2021 onwards,” despite the pace of recovery having been slowed by the partial re-establishment of temporary restrictions in June due to the increase in cases of Covid-19.
The EU executive estimates, however, that after a 3.2% setback in the first quarter of the year due to strict confinement, Portugal’s gross domestic product (GDP) grew by 3.3% in the second quarter and will register a new increase in the third quarter, with the expected increase in foreign tourism in the country, helped by the vaccination campaign in Europe and the launch of the EU Covid-19 digital certificate.
These forecasts still fall short of the government projections, which show growth above its own forecast of 4% included in the Stability Programme, as well as the most recent forecast of the Bank of Portugal, which on June 16 revised its projections upwards, anticipating a rise in GDP of 4.8% in 2021 and 5.6% in 2022.
