For Portugal, the Washington-based institution forecast growth of 4% this year and 2.1% in 2023. These figures represent a sharp downward revision as in October, the IMF projected a 5.1% increase in GDP for this year.
The new forecast of 4% for 2022 is more pessimistic than the Government’s. In the Stability Programme delivered in Brussels, João Leão, the former Finance Minister, pointed to a growth rate of 5% for this year, a figure that has since been revised downwards to 4.9% by the new Finance Minister Fernando Medina in the State Budget proposal delivered to Parliament last week.
Portugal's debt down 7.8 p.p., third highest fall in EU
Portugal recorded the third largest reduction in government debt in the EU last year, only behind Greece and Cyprus, according to Eurostat this Friday.
Portugal’s government debt fell 7.8 percentage points from 135.2% of GDP in 2020 to 127.4% of GDP in 2021. However, it had risen by 18.6 percentage points from 2019 (116.6% of GDP) to 2020 because of the pandemic’s double impact on debt and GDP.
In Greece’s case, where the ratio fell by 13.1 percentage points, government debt fell from 206.3% of GDP in 2020 to 193.3% of GDP in 2021. Cyprus saw its ratio shrink from 115% of GDP in 2020 to 103.6% of GDP in 2021, down 11.4 percentage points.