In the World Economic Outlook published on Monday, including updated projections for economies around the world, the IMF estimated that Portugal’s gross domestic product (GDP) would grow by 1.1 percent in 2017, compared to a previous estimate of 1.3 percent.
The projections are less optimistic than the Portuguese government’s, as included in the 2016 State Budget, which stipulates economic growth of 1.8 percent this year.
However, Prime Minister António Costa said on Monday in an interview with daily newspaper Público that GDP may grow by just over 1 percent this year.
The IMF expects inflation of 0.7 percent this year and 1.1 percent in 2017. By 2021 the Portuguese economy should record growth of 1.2 percent (lower than the Euro Zone average of 1.5 percent), and inflation of 1.8 percent (1.7 percent across the Euro Zone).