Portuguese economy is the fastest growing in 2022

The Portuguese economy is expected to grow 5.8% in 2022, according to new estimates released 16th May by the European Commission. If these projections are confirmed, Portugal’s growth in 2022 will be the most significant in all of Europe and more than double the European. Inflation is estimated to be 4.4%, according to Brussels, below the European average of 6.1% and well above the 2.3% previously estimated.

The European Commission's new projections place Portugal as the European country with the highest growth in 2022. Ireland is the second country with the most positive GDP growth at 5.4%. 

Brussels had already improved Portuguese growth forecasts in February. The upward revision of projections for Portugal’s economy comes despite the European Commission having significantly cut European estimated growth. Earlier Brussels had estimated a growth of 4.4% in the eurozone in 2022, but that forecast has now dropped to 2.7% in 2022. For the European Union as a whole, economic growth rates of 2.7% and 2.3% are also projected for 2023.

The growth projection by the European Commission for Portugal also exceeds the 4.9% predicted by the Portuguese Government in the State Budget. Brussels also expects the unemployment rate in Portugal to drop to 5.7% in 2022 (down from 6.6% at the end of 2021) and to 5.5% in 2023. The European Commission also estimates the public deficit will be below 2% - 1.9% - in 2022, then falling to 1% in 2023.

Prime Minister António Costa said on Twitter that “The economic projections published today by the European Commission are very favourable for Portugal, exceeding the Government's current growth forecasts”.