Portugal Economic Forecast

Portugal Economic Outlook

March 26, 2019

Detailed national accounts data for Q4 2018 confirmed a slight acceleration at year-end, as a rebound in exports lessened the external sector’s drag on growth. Available indicators hint at a loss of traction going into 2019, although growth likely remained healthy. The current account deficit widened in January on a fall in exports, offsetting the impact of higher remittances, while the industrial sector contracted more sharply in the month. Moreover, while retail sales accelerated in January, consumer confidence tumbled to an over two-year low in February, signaling downbeat prospects for household spending. On the upside, S&P Global Ratings upgraded Portugal’s credit rating by a notch to BBB on 15 March, citing improving debt dynamics and balanced growth. The news lifted investors’ appetite for the country’s sovereign debt, hurling the 10-year bond yield close to historic lows.

Portugal Economic Growth

The economy is set to cool this year, owing to a less dynamic external sector and softer domestic demand. Exports are expected to slow amid choppier waters in the global economy, and tourism activity will also likely moderate. Moreover, private consumption and fixed investment are expected to weaken on tighter credit availability, as less favorable economic conditions weigh on consumer confidence and business sentiment. FocusEconomics analysts expect growth of 1.7% in 2019, which is unchanged from last month’s forecast, and 1.5% in 2020.

Sample Report

5 years of Portugal economic forecasts for more than 30 economic indicators.


Sample Report

Get a sample report showing our regional, country and commodities data and analysis.


Portugal Facts

Bond Yield1.17-1.90 %Apr 22
Exchange Rate1.130.65 %Apr 22
Stock Market5,360-0.02 %Apr 18

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Portugal Economic News

Search form