{ "title": "Portugal: Recovery and Risks", "publication": "IMF News, September 13, 2018", "sourceUrl": "https://www.imf.org/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks", "canonical": "https://www.imf.org/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks", "overlayPath": "/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks/index.md", "summary": "Portugal has turned the page on its 2010-13 crisis and is now enjoying a job-rich economic recovery, driven by investment and exports, says the IMF in its latest annual assessment of the country’s economy.", "publishDate": "2018-09-13", "sections": [ { "heading": "Recovery and Growth", "content": "- Real GDP growth reached 2.7 percent in 2017, the highest rate since 2000.\n- In 2018, real GDP should grow by 2.3 percent.\n- Recovery driven by re-energized investment, robust exports, and stable consumption, supporting a rebalancing of the economy.\n- Investment and exports are highlighted as strong drivers of the job-rich recovery." }, { "heading": "Labor Market and Employment", "content": "- Job-rich growth: the unemployment rate fell to a record low of 7. 1 percent in April 2018.\n- Employment grew by 3.3 percent in 2017.\n- Labor force participation increased by 1.1 percent in 2017.\n- Long-term unemployed are returning to work in large numbers." }, { "heading": "External Sector", "content": "- Trade has played an increasingly important role as a driver of economic growth.\n- Booming tourism has boosted services; exports of services have offset an increase in goods imports." }, { "heading": "Public Debt and Vulnerabilities", "content": "- High public debt is a major vulnerability.\n- Under current policies, Portugal's debt-to-GDP ratio is projected to decline by 23 percentage points from its 2017 level to 103 percent in 2023.\n- Given its high starting point, Portugal needs to keep public debt on a firm downward trajectory to build buffers against future shocks and maintain investor confidence." }, { "heading": "Fiscal Performance and Policy Recommendations", "content": "- Fiscal performance in 2017 was robust, reflecting strong economic growth, controlled budget execution, and falling interest costs.\n- Continued fiscal discipline will be key to reducing debt.\n- Fiscal consolidation should focus on a sustainable plan to reduce current expenditure, with particular attention on wages and pensions.\n- Fiscal discipline is described as a cornerstone of debt reduction.\n\nPortugal: Recovery and Risks — September 13, 2018\n\n---\n\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- Read the report\n- Read the press release\n- Selected issues\n- Portugal and the IMF\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks" } ], "bullets": [ "[Markdown version](/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks/index.md)", "[Structured JSON version](/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks/index.json)", "[Bundle manifest](/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks/bundle-manifest.json)", "Published: September 13, 2018", "Real GDP growth reached 2.7 percent in 2017, the highest rate since 2000.", "In 2018, real GDP should grow by 2.3 percent.", "Recovery driven by re-energized investment, robust exports, and stable consumption, supporting a rebalancing of the economy.", "Investment and exports are highlighted as strong drivers of the job-rich recovery.", "Job-rich growth: the unemployment rate fell to a record low of 7. 1 percent in April 2018.", "Employment grew by 3.3 percent in 2017.", "Labor force participation increased by 1.1 percent in 2017.", "Long-term unemployed are returning to work in large numbers.", "Trade has played an increasingly important role as a driver of economic growth.", "Booming tourism has boosted services; exports of services have offset an increase in goods imports.", "High public debt is a major vulnerability.", "Under current policies, Portugal's debt-to-GDP ratio is projected to decline by 23 percentage points from its 2017 level to 103 percent in 2023.", "Given its high starting point, Portugal needs to keep public debt on a firm downward trajectory to build buffers against future shocks and maintain investor confidence.", "Fiscal performance in 2017 was robust, reflecting strong economic growth, controlled budget execution, and falling interest costs.", "Continued fiscal discipline will be key to reducing debt.", "Fiscal consolidation should focus on a sustainable plan to reduce current expenditure, with particular attention on wages and pensions.", "Fiscal discipline is described as a cornerstone of debt reduction.", "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)", "[PRESS CENTER](http://presscenter.imf.org/)", "[Read the report](http://www.imf.org/en/Publications/CR/Issues/2018/09/12/Portugal-2018-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-46224)", "[Read the press release](http://www.imf.org/en/News/Articles/2018/09/12/pr18345-portugal-imf-executive-board-concludes-2018-article-iv-consultation)", "[Selected issues](http://www.imf.org/en/Publications/CR/Issues/2018/09/12/Portugal-Selected-Issues-46225)", "[Portugal and the IMF](https://www.imf.org/external/country/prt/index.htm?type=56)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks/index.md", "json": "/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks/index.json", "bundleManifest": "/en/news/articles/2018/09/11/na091318-portugal-recovery-and-risks/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T22:09:58.118Z" }