Portugal is EU’s ‘fastest growing economy’
The European Commission has revised upwards its forecast for Portugal’s growth in gross domestic product this year, by 0.7 of a percentage point to 6.5%, meaning that it is the European Union member state whose economy is seen expanding the fastest, according to macroeconomic forecasts released today.
The commission’s new forecast for GDP growth, of 6.5% – up from its May forecast of 5.8% – is more optimistic than that of Portugal’s government, which is predicting growth of 4.9%.
It also points to Portugal’s economy growing not only faster than the euro-zone as a whole – where GDP is seen growing by 2.6% and the EU average of 2.7% – but faster than any other EU economy.
However, the commission is a great deal more pessimistic over Portugal’s growth for next year, and has cut its forecast to 1.9%, down from its May forecast of 2.7%.
The commission is now the most optimistic among leading national and international institutions on Portugal’s GDP growth this year.
The Bank of Portugal sees growth of 6.3%, the International Monetary Fund 5.8%, the Organisation for Economic Cooperation and Development 5.4% and Portugal’s Public Finance Council 4.8%.