Endividamento - Antonio Gaspar

Portugal Economic Outlook

The economy continues to make progress towards restoring the growth momentum seen before the 2008 financial crisis.

In September, the economic activity indicator—published by the EU’s Directorate-General for Economic and Financial Affairs—rose to the highest level since March 2000.

Underpinning the rise was an ongoing expansion in the construction sector, driven by demand from the flourishing tourism sector.

Business confidence also remained high in the month, and latest figures show industrial output growth surged in August.

Consumer confidence, however, deteriorated in September over less favorable perceptions about the general economic situation over the next twelve months.

 On 13 October, the Finance Ministry unveiled key features of the planned 2018 budget.

Notable proposals include reducing the budget deficit to 1.0% of GDP, raising the number of tax brackets from five to seven to ease the tax burden for some earners and introducing higher taxes for certain packaged foods that contain high levels of salt.

Moreover, the government forecasts the debt burden dropping to 123.5% of GDP in 2018.