OECD forecasts 1.3 pct growth for Portuguese economy in 2015

29 October 2014

The Organisation for Economic Cooperation and Development (OECD) expects Portugal’s economy to grow 1.3 percent in 2015, lower than the forecast issued in May and the Portuguese government’s 1.5 percent projection, according to a report released Monday in Paris.

For 2016, the OECD projects growth of 1.6 percent, also 0.2 percentage points lower than the government forecast for this year (1.7 percent) in the Budget Strategy Document issued in April.

The OECD also estimates that the deficit will reach 2.9 percent of GDP and Portuguese public debt will be 128.3 percent of GDP in 2015, higher than the targets set by the government.

For 2014, the OECD estimates a budget deficit of 4.9 percent of GDP, slightly higher than the 4.8 percent reported to Brussels by the government as part of the Excessive Deficit Procedure at the end of September.

The OECD also lowered its growth forecast for 2014, now expecting GDP to rise 0.8 percent instead of 1.1 percent estimated in May, which is also below the 1.0 percent growth expected by the government in the proposed state budget.

In the report, the OECD considers that “exports will continue to lead the economic recovery, accompanied by the recovery of Portuguese export markets, especially in the eurozone.” (macauhub/PT)