Washington, July 1, 2024 (Lusa) - The International Monetary Fund (IMF) has revised upwards its forecast for the growth of the Portuguese economy this year to 2.0%, compared to the previously estimated 1.7%.

In April, the IMF had already revised Portugal's economic growth upwards to 1.7% this year and cut the inflation rate to 2.2%.

"IMF staff forecast growth of around 2% in 2024, with a slight recovery to 2.25% in 2025, as financial conditions gradually ease," said the institution led by Kristalina Georgieva.

In the medium term, the IMF expects an ageing population, low investment and low productivity gains to "keep growth below 2%".

The Fund's experts also anticipate that inflation in Portugal will "fall to 2% in 2025", despite a "temporary rise" this year.

Underlying inflation, considered "more rigid", is also expected to fall.

Also in the medium term, tourism flows should support a current account surplus, notes the IMF.

In May, the European Commission also upgraded Portugal's economic growth forecasts to 1.7% this year and 1.9% next year, compared to the 1.2% in 2024 and 1.8% in 2025 expected in the February report.

Both the IMF and Brussels are more optimistic for this year than the Portuguese government, which in the Stability Programme has set a growth rate of 1.5% this year, while the Bank of Portugal (BdP) predicts a GDP expansion of 2% and the Public Finance Council (CFP) and the Organisation for Economic Cooperation and Development of 1.6%.

JO/AYLS // AYLS

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