European Commission forecasts attest to the credibility of the Government’s accounts The forecasts estimate that Portugal will again grow significantly above the Euro Area in 2022

The European Commission's (EC) Autumn Economic Forecast, published today, revised upwards the GDP growth forecasts for 2021 and 2022, attesting to the country's strong economic recovery perspectives, in line with the forecasts presented in the draft State Budget for 2022.

The EC points to a growth in the Portuguese economy of 4.5% to 5.3% in 2021 and 2022, respectively, compared to 3.9% and 5.1% in the previous forecasts.

The EC forecasts confirm that Portugal will grow significantly above the Euro Area in 2022, with a growth of 5.3%, 1 p.p. above the Euro Area (4.3%).

As for public finances, the better EC forecasts for the budget deficit are in line with the amount presented by the Executive in the draft State Budget for 2022, attesting to the credibility of the Government's accounts.

As for public debt, the forecasts confirm that Portugal is on a path of strong reduction of public debt this year. The EC envisages a reduction of 11 p.p. in public debt from 135.2% in 2020 to 123.9% in 2022. These amounts show that Portugal is on the right track to ensure sustainability of its public finances and financial stability.

"The European Commission's forecasts show that the macroeconomic and budgetary scenario presented by the Government in the draft State Budget for 2022 is credible and that the Portuguese can be confident in the future."

They also confirm that the context of political uncertainty we are experiencing does not derive from financial problems or a crisis in public finances, as happened in the past.

Furthermore, they show that the current situation isn't being perceived as a risk for the targets set in the scenario presented by the Government in October.