Fitch says Portuguese economy will slow by 2020
The US ratings agency Fitch predicts that Portugal’s economy will slow between now and 2020 as international “cross winds”, including the continued US trade war with China, continue to blow uncertainties across the world’s markets.
After having grown 2.1% in 2018, Fitch predicts that Portugal’s GDP will increase 1.7% this year and fall back to 1.5% in 2020.
“We estimate that the slowdown will continue in 2019 and 2020”, states Fitch in a note sent out on Tuesday to news-desks after having improved Portugal’s economic outlook in May.
“Domestic demand will drive growth while the prospects for net exports are down,” adds Fitch stressing that with Portuguese exports representing around 44% of GDP, the sector is facing “uncertain wind from overseas”.
The risk of weaker than expected eurozone growth and the hotting up of trade wars are all factors which are upping the risk of uncertainty in relation to current external economic factors.
At the end of May, Fitch improved Portugal’s ratings prospects from Stable to Outlook Positive which means that it is considering raising the rating from BBB to BBB+ at the next evaluation in November.