The Bank of Portugal (BoP) presented its forecasts for the Portuguese economy for the period 2014-2016. In the report, the institution says that Gross Domestic Product (GDP) this year will be 0.9%. For the next two years, the bank points a growth of 1.5% for 2015 and 1.6% for 2016, “which set an average growth in this period slightly higher than projected for the euro area”.
“These projections contemplate the maintenance of a robust export growth and an acceleration of Gross Fixed Capital Formation (GFCF) in 2015-2016. The dynamism of exports, in a context of improved terms of trade, should favor the maintenance of the current and capital account surplus throughout the forecast horizon, allowing an improvement in IIP”, reveals the BoP.
Regarding inflation, the Bank of Portugal foresees “low levels, being that it should be maintain the descendant pressures over prices internally and externally”. On the other hand, the private sector “should be register a growth of total GDP”, due to the reduced activity in the public sector. Likewise, both the goods and services industry as the construction will accelerate and recover, respectively.
Relative to exports of goods and services, projections of BoP “aim for a growth of 2.6 percent in 2014, 4.2 percent in 2015 and 5 percent in 2016”, a situation that will ensure the dynamics of the Portuguese economy, “alongside a recovery in domestic seeks”.
[photo credit: fdecomite]
