The Organisation for Economic Cooperation and Development (OECD) revised its economic growth forecast upwards for Portugal in 2015 and 2016, years in which the economy is expected to grow 1.6 percent and 1.8 percent, respectively, according to the latest OECD report.
The economic growth forecasts contained in the “Economic Outlook” published Wednesday are slightly higher than in the report from November 2014, which expected Portugal’s economy to grow 1.3 percent in 2015 and 1.5 percent in 2016.
The OECD projects the Portuguese budget deficit will be 2.9 percent of gross domestic product (GDP) in 2015, which for the first time in many years is lower the 3 percent limit set by the Maastricht Treaty, but higher by 20 basis points than the government forecast.
For 2016, the Paris-based organisation raised the forecast budget deficit as a percentage of GDP to 2.8 percent against a previous forecast of 2.3 percent and well above the government forecast of 1.8 percent.
The OECD expects Portugal’s public debt to fall this year, from 130.2 percent of GDP recorded in 2014 to 127.7 percent this year and fall back to 124.2 percent in 2016. (macauhub/PT)