Positive economic projection for 2021-23

According to the Economic Bulletin from Banco de Portugal from Banco de Portugal (Bank of Portugal), issued in June 2021, the Portuguese economy is expected to have a positive scenario for the next two years. Please find below a few highlights:

• GDP is projected to grow by 4.8% in 2021, 5.6% in 2022 and 2.4% in 2023;
• The economy will return to its 2019 level in the first half of 2022;
• Inflation will rise marginally over the horizon, to 0.7% in 2021, 0.9% in 2022 and 1.0% in 2023;
• Private consumption will grow by 3.3% in 2021 and recover more markedly in 2022 (4.9%);
• Investment will grow, on average, by 7% in 2021-23;
• Exports will grow by around 14% in 2021-22;
• The current and capital account will post a surplus of 0.9% of GDP in 2021 and of close to 2% of GDP in 2022-23 due to the recovery in tourism and the inflow of European funds;
• Employment is projected to rise by 1% in annual average terms in 2021-23.
  

These projections bring an optimistic scenario for the Portuguese economy, where important indicators will, sooner or later, be back to pre-Covid figures and bring some confidence to businesses.