Recovery of the Portuguese economy has been predicted by the Organisation for Economic Co-operation and Development (OECD) according to recent data, which also anticipates a similar economic expansion for the eurozone.
The OECD releases a report every month in which it attempts to detect the first signs of economic turning points and performance of a country in a six to nine-month period.
In simple terms, the organisation considers there is an expansion in a country’s economy when its economic indicator is above 100 points and still continues to rise. Alternatively, when a country is still over the 100 mark but sees a decrease in its total then the OECD considers there to be a slowdown of economic activity.
However, when the tendency is to grow, yet the nation still remains under the mark, there is said to be signs of recovery. If the level moves further down the 100 points then there is a contraction or declining economic activity.
Taking into account the fact that Portugal registered 101.5, a growth tendency that has been registered since February, there is reason to believe that the nation’s economy may be expanding in the near future, according to OECD indicators. From April to May, Portugal recorded an increase of 0.26 points (from 101.3 to 101.5).
Additionally, the 17 eurozone countries were above the 100 point benchmark, meaning the growing tendency across the region has remained practically unscathed.
For the group of 30 OECD countries, economic activity is also predicted to expand in Italy, Germany and the UK while it is expected to stabilise in France.
