IMF Staff Country Reports

Portugal : Sixth Post-Program Monitoring Discussions-Press Release; Staff Report

Author/Editor:

International Monetary Fund. European Dept.

Publication Date:

February 22, 2018

Electronic Access:

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Summary:

The Portuguese economy has strengthened. Supported by a benign external environment, job-rich growth has gathered momentum since late 2016. The headline fiscal balance continued to benefit from stronger growth and falling interest costs, with the 2017 deficit target of 1.4 percent of GDP likely to have been met with some margin. Financial stability has also improved with various bank capital augmentations and the sale of Novo Banco in 2017, while banks have also reduced their NPLs and returned to modest profitability. Growth is projected at 2.2 percent in 2018. Downside risks in the near term are mostly external in nature and appear moderate.

Series:

Country Report No. 18/52

Subject:

Debt sustainability Debt sustainability analysis Economic conditions Economic indicators Executive Board decisions Fiscal indicators Fiscal sector Portugal Post-program monitoring Press releases Public debt Real sector Risk management Staff reports