The OECD revises Portugal’s economic growth down to 2.2% this year

The Organization for Economic Co-operation and Development (OECD) has revised its downward forecast for the national economy, now indicating growth of 2.2% for this year, 1.2% for 2024, and 2% for 2025.

According to the Economic Prospects Update report, published today, the organization has revised the values, compared to those presented in June in which it indicated a growth in Portuguese GDP of 2.5% this year and 1.5% in 2019. 2024.

These forecasts are lower than those from the International Monetary Fund (IMF), which expects the Portuguese economy to grow by 2.3% this year and 1.5% in 2024 and are similar to the Council of Public Finances (CFP) forecast of 2.2% for 2020. This year.

The OECD stressed that “low business and household confidence, modest global growth and high uncertainty are holding back activity, although a constrained labor market supports wage growth, private consumption and the implementation of the Recovery and Resilience Plan (PRR) boosts investment.” the report.

He pointed out that “the gradual strengthening of external demand will support exports in the period 2024-2025.”

The OECD also stressed that “public debt will continue to decline and will fall below 100% of GDP in 2025,” adding that “more efficient public spending and a strengthened budget framework will help address the increasing pressures on spending arising from the crisis.” . Aging population and strong investment needs.

However, the OECD warned, “Despite continuing declines, public debt relative to GDP remains high,” noting that “strong growth, more efficient spending and a strengthened budget framework are essential” to “deal with emerging budgetary pressures.” “. of population aging and investment needs.”