Portugal: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Portugal
IMF Staff Country Reports, September 12, 2018
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- Portugal: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Portugal
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Bibliographic details
- Published: September 12, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484375921.002
Summary findings and outlook
- Following robust growth in 2017, driven by investment and exports, activity in Portugal is expected to moderate in 2018.
- Unemployment continues to fall on the back of sustained employment growth.
- Credit growth continues to lag the recovery in economic activity, as banks repair their balance sheets.
- Rising capital ratios, falling rates of non-performing loans and lower impairments meant that the resilience of banks improved significantly in 2017.
- Further improvement in the banking sector is expected in 2018.
- Nevertheless, no significant acceleration in credit growth is expected, and the economy should continue deleveraging its external balance sheet.
Banking, credit, and financial sector
- Banks repaired balance sheets in 2017, evidenced by:
- Rising capital ratios.
- Falling rates of non-performing loans.
- Lower impairments.
- These developments materially improved bank resilience in 2017, with further improvement expected in 2018.
- Despite improved bank health, credit growth remained subdued and is not expected to accelerate significantly in 2018.
Labor market
- Employment growth has been sustained, contributing to a continued decline in unemployment.
External sector and deleveraging
- The economy is expected to continue deleveraging its external balance sheet.
Publication and metadata
- Publication title: Portugal: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Portugal
- Date: September 12, 2018
- Series: Country Report No. 2018/273
- Issue: 273
- Volume: 2018
- Pages: 65
- DOI: https://doi.org/10.5089/9781484375921.002
- Stock No: 1PRTEA2018002
- ISBN: 9781484375921
- ISSN: 1934-7685
- Subjects: Banking, Credit, Financial institutions, Fiscal policy, Fiscal stance, Loans, Money, Nonperforming loans, Public debt
- Keywords: company recovery, core inflation, CR, Credit, Europe, firm, firm path, Fiscal stance, Global, headline deficit, holding, ISCR, Loans, Nonperforming loans, recovery code, SME, support SME
International Monetary Fund. Portugal: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Portugal. Country Report No. 2018/273 (2018).
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- Country Report