Finance minister confident economy can grow more than forecast in 2021

The Finance Minister on Monday reiterated his confidence that the Portuguese economy can grow more in 2021 than forecast in the Stability Programme, due to the phase of “turning point” and “strong recovery” that is being observed.

“We are, in fact, in a phase – and the different indicators confirm this – of turning point, of strong recovery [of the economy] and we are convinced that the numbers that we presented in the Stability Programme can be surpassed,” said Finance Minister João Leão, on the sidelines of the presentation of the IVAucher programme, which aims to stimulate consumption in three of the sectors most affected by the pandemic.

In the Stability Programme, presented in April, the Government is targeting Gross Domestic Product (GDP) growth of 4.0% in 2021, after a 7.6% contraction last year.

Reacting to forecasts from the Organisation for Economic Cooperation and Development (OECD), released today, the minister underlined the fact that these had been revised upwards and that, for 2022, the OECD forecasts a growth rate identical to that of the Government (4.9%).

“The OECD, which was the most pessimistic institution, revised its figures upwards, very close to the Government’s forecasts and for 2022 has the same estimate as the government, of 4.9%,” said the minister.

In its forecasts released today, the OECD now points to growth of the Portuguese economy of 3.7% in 2021. In its December projections, it said the economy would grow 1.7% in 2021 and 1.9% in 2022.