IMF reviews Portugal’s GDP growth downwards to 2.3% in 2023 and 1.5% in 2024

The International Monetary Fund (IMF) has forecast that Portugal’s GDP will grow 2.3% in 2023 and 1,5% in 2024.

The IMF forecasts had been more optimistic, but decided to review them downwards in its World Economic Outlook report published yesterday.
The last IMF forecasts were in June when the prospects for the Portuguese economy were generally optimistic and pointed to growth of 2.6% this year and 1.8% next.
The first quarter of 2023, with growth of 1.8% growth QoQ and 2.5% YoY had been surprisingly higher than anticipated, hence the reason why the IMF had initially made more optimistic projections.
But the economy lost momentum in Q2 with more timid growth across the international economy, reducing expectations.
The Bank of Portugal has also revised growth percentages downwards to 2.1% this year and 1.5% next year.
The government is likely to forecast growth of between 2.1% and 2.2% this year and 1.5% in 2024.
As to inflation, the IMF expects it to be 5.3% in Portugal this year (above the 5.1% forecast in the Stability Programme).