On its first heady day back in business, the government has announced that it is hoping to surpass forecasts for economic growth in 2022.
A note from the office of finance minister João Leão has said the news from INE – that GDP grew by 4.9% in 2021, exceeding expectations of both the European Commission and the Bank of Portugal – has “reinforced confidence in the continuation of rapid recovery of the Portuguese economy during 2022”.
The ministry “anticipates” that pre pandemic levels can be exceeded in the next six months – and even top the government’s estimates for growth this year, of 5.5%.
All in all, this has been a propitious day: the government clinched the absolute majority polls said it couldn’t expect; GDP has come in higher than all the forecasts – and now economic growth looks set to follow.
Says Expresso, “congratulating themselves” over INE’s data on GDP this morning, the executive considered: “this is s very positive result for Portugal and shows the national economy is in a phase of strong recovery and that it picked up the process of convergence with the European Union from the second trimester of 2021”.
The main reason for all this good news is the recovery of ‘private consumption’ (ie people’s spending) and investment, bringing with it the recovery of imports and exports.