The International Monetary Fund (IMF) has revised its growth estimates for this year, as outlined in the World Economic Outlook released today. The forecast was decreased from the 2% predicted in April, while projections for 2026 have been adjusted upwards from 1.7% to 2.1%.
These forecasts fall short of the growth rates outlined in the Government’s 2026 State Budget (OE2026), where the coalition government of PSD/CDS-PP expects the Gross Domestic Product (GDP) to increase by 2% this year and 2.3% in 2026.
The IMF also provided projections for inflation, predicting it to reach 2.2% this year and 2.1% in 2026.
Regarding unemployment, the IMF estimates Portugal’s rate to be 6.4% this year, decreasing to 6.3% next year. This contrasts with the government’s expectations in OE2026, which forecast a more significant decline to 6.1% and 6% respectively.
[News in update]
