Portugal – Central Bank raises its growth forecast in 2022 to 6.3%

By Sergio Goncalves

LISBON (June 15) (Reuters) – The Bank of Portugal on Wednesday raised its forecast for economic growth for this year to 6.3 percent from 4.9 percent forecast in March, to take into account the health of renewed tourism, while stressing the impact of the war. In Ukraine will affect the activity in the coming months.

Portugal’s gross domestic product jumped 11.9% in the first quarter compared to the same period last year, after growing 4.9% in 2021.

“We are reviewing growth for the full year 2022 and beyond,” central bank governor Mario Centeno told reporters. “But we are reviewing the second, third and fourth quarters due to the deterioration of the international situation after the unjustified invasion of Ukraine.”

Previous projections were made before the first-quarter growth figure was known.

Mario Centeno illustrated the current strength of economic activity with the rapid recovery of the tourism sector, which should return from the middle of this year to the pre-pandemic level.

The central bank also raised its inflation forecast for 2022 to 5.9% from 4%, but expects it to fall to 2.7% in 2023 and 2.0% in 2024.

Mario Centeno has specified that growth is currently expected at 2.6% next year and 2% in 2024 (Reportage by Sergio Goncalves, French version Marc Angrand)

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"Bacon ninja. Guru do álcool. Explorador orgulhoso. Ávido entusiasta da cultura pop."

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