Central bank forecasts confirm that elections do not affect confidence in economy – João Leão

Finance minister João Leão, said on Friday that macroeconomic forecasts from the Bank of Portugal (BoP), which are more optimistic than those of the government for 2022, confirm that the current political situation does not call into question the confidence of institutions.

“These forecasts confirm that the current political situation of early elections has not called into question the confidence of the various institutions in the performance of the Portuguese economy,” said João Leão in response to a request from Lusa for a reaction to the BdP projections, released today.

At the press conference to present the December Economic Bulletin, in Lisbon, BoP governor Mário Centeno said that “there is no political risk identified” in the forecasts.

The BoP today forecast a 5.8% growth in the economy in 2022, matching the most optimistic forecasts, while still maintaining the 4.8% forecast for this year.

The forecasts released today by the BdP for 2022 equal the most optimistic forecasts of the Organisation for Economic Cooperation and Development (OECD), which also points to economic growth of 5.8%, and surpass those of the Government, which expects 5.5%.

“Once again we see that the most recent estimates, both national and international, exceed the Government’s official forecasts,” the minister of finance told Lusa, also pointing out that the BdP “predicts growth close to 17% by 2024.”

For João Leão, “the country has taken a solid and sustained path and will continue to do so. And the Bank of Portugal’s figures “only reinforce our confidence in the future”, he added.

“Despite some uncertainty associated with the evolution of the pandemic, we are certain that these are transitory risks, which will not prevent the full recovery of the Portuguese economy,” the minister told Lusa.