The economy is expected to grow 2.5% this year and 1.2% in 2024

The Portuguese economy is expected to grow by 2.5% this year. The figures were provided by the forecasts of Allianz Trade*, contributor to COSEC- Companhia de Seguro de Créditos, thus revising the forecasts for Portugal’s Gross Domestic Product (GDP), which should increase by 2.5% in 2023 and 1.2%. Next year. In the last quarter, the national economy is expected to expand by 1% in 2023 and 1.2% in 2024.

The Eurozone forecast for 2023 has also been revised upwards. Experts are now pointing to a growth of 0.5% this year in the single currency bloc and an economic growth of 1% in 2024. These data indicate that some major economies entered recession at the beginning of this year, the study “Climbing the Wall of Fears – Summer Economic Outlook”, It reflects in particular the difficult context that some euro economies faced at the beginning of this year and that may continue throughout 2023. The German economy, which is the largest in the eurozone, should end with a contraction of 0.1%, France, in turn, should grow by 0.6%.

Spain’s GDP is expected to expand by 2% and Italy’s by 1.1%. “The experts, in this update of the economic outlook, are a little more optimistic, thanks to some resilience that they did not anticipate over the first few months, due in particular to stronger-than-expected tourism in some eurozone economies.”

As for inflation, expectations are that Portugal will end the year with an inflation rate of 5.3%. For 2024 the inflation rate should be 3%. These figures are close to the eurozone average, which is expected to post inflation of 5.6% this year and 2.6% in 2024, heading towards the European Central Bank’s target of close to 2%.

As 2024 approaches, other concerns emerge from the experts, who point out that despite the upward revisions to economic estimates, there are some warning factors, such as the state of impending elections in economies that account for about 75% of the population. global gross domestic product. Austria, India, Mexico, Poland, Romania, Russia, South Africa, Taiwan, USA, UK are some examples of countries that will be in the process.