OECD forecasts strong growth for the Portuguese economy

The OECD’s economic forecasts for Portugal, disclosed today, estimate a strong recovery for the Portuguese economy, with GDP rising 14% between 2021 and 2023 (4.8% in 2021, 5.8% in 2022 and 2.8% in 2023).

These estimates are above the last official forecasts disclosed by the Portuguese Government.

Next year, it is estimated that Portugal will be the OECD country with the highest economic growth rate, being 1.6 percentage points above the pre-pandemic economic activity level.

These forecasts also confirm the expected path of convergence with the Euro Area. Portugal is expected to grow almost 2 percentage points above the Euro Area until 2023, the fifth highest rate among the 19 countries with the single currency.

The OECD explains the Portuguese economy’s recovery with the expectation of the solid rise in public and private investment, in large part due to the Recovery and Resilience Facility.

The next few years will be marked by a strong growth in investment, expected to be 24% until 2023.

As for public finances, the OECD estimates that the Government will once again meet the budget deficit target set for 2021 and that Portugal will resume this year a clear trajectory to reduce public debt.

These forecasts are a clear sign of the credibility gained by the country in these last few years and reaffirm the confidence that international institutions have in the Portuguese economy’s performance.