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Economy in Portugal should grow 1.3% this year

Data released by Allianz Trade points to Portuguese economy growth of 1.3% this year and 1.8% in 2025.

10 Apr 20242 min

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Data predicts 1.3% growth for the Portuguese economy this year.

According to data from Allianz Trade, a shareholder of the Credit Insurance Company, the economy in Portugal is expected to grow by 1.3% this year, and by 1.8% in 2025 (contrary to previous data indicating 2.3%).

According to the data released by Notícias ao Minuto publication, Allianz Trade also indicates that it moderated its global projections, pointing to a scenario of stable growth, 1.6%, in the most developed economies, and a deceleration for emerging markets, predicting a growth of 4% (0.3 percentage points lower than the previous forecast). It also predicts that the eurozone will accelerate to 1.5% in 2025, compared to 0.7% in 2024.

The economists at Allianz are cautious and highlight the idea that central banks should adopt a monetary easing stance in the second half of 2024," the report states, affirming that "analysts believe there should be a divergent economic scenario, marked by lower inflation and financial markets will continue to be influenced by a variety of geopolitical factors and also advances in Artificial Intelligence," as can be read in the news, about the concluded data.

Regarding inflation in Portugal, data suggests a forecast of 2.3% this year, and 1.9% in 2025, while in the euro area the forecast is 5.6% in 2024 and 2.6% in 2025 (approaching the European Central Bank's target of 2%). 

Allianz's report also warns of "the possibility of cost cuts in some services" due to "significant challenges for companies".  

The forecast of the Allianz report, according to the information site, also points to "a 9% increase in business insolvencies in 2024, with most of this increase occurring in those three countries." Therefore - it mentions - it is extremely important to pay attention to "the movements of central banks, which can have significant implications for global financial markets," and encourage "a cautious and strategic approach by investors."

The forecast for the Portuguese economy is positive, and your budget can keep up! Want to save with your credit and insurance portfolio? Poupança no Minuto offers free credit intermediation and insurance mediation services that help you renegotiate or transfer products to lower your monthly payments! To move forward, you can contact us here:

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