IMF confirms projection of 1.2 pct growth for Portugal’s economy in 2014

10 April 2014

The International Monetary Fund (IMF) confirmed the projections for the Portuguese economy that were recently published by the government, forecasting growth of 1.2 percent and unemployment of 15.7 percent in 2014, according to a report issued Tuesday in Washington.

In its “World Economic Outlook,” the IMF, one of the three members of the three-way supervisory commission of Portugal’s Economic and Financial Aid Programme, along with the European Commission and the European Central Bank, confirmed its upward review of Portugal’s macroeconomic outlook published by the government following the 11th review of the programme.

The IMF projects that Portugal’s economy will post growth of 1.2 percent this year and 1.5 percent in 2015, after a recession of 1.4 percent in 2013, the third consecutive year of economic contraction in Portugal.

According to the World Economic Outlook, the 18 Euro Zone countries with “high (public and private) debt” will have lower rates of growth due to the impact of these two factors on internal demand.

In relation to Brazil, the Portuguese-speaking country with the largest population, the IMF reduced it economic growth projection by half a percentage point to 1.8 percent in 2014.

For 2015, the IMF expects growth of 2.7 percent, or 0.2 percentage points down on the January projection.

According to the report the Brazilian economy is expected to see continued problems related to a lack of infrastructure and reduced private investment, which will lead to a loss of competitiveness and low confidence of business owners. (macauhub)