The IMF estimates that the Portuguese economy will grow 1.3% in 2016, and in 2017 – to the Public.en

The International Monetary Fund (IMF) estimates that the Portuguese economy will grow 1.3 percent this year and keep this growth rate in the next, showing slightly more optimistic than the Government for this year, but more pessimistic for 2017.

in A statement after the fifth mission of monitoring post-bailout program to Portugal, which took place between November 29 and last Wednesday, the IMF improved slightly the predictions of economic growth, once in October, when it said the latest estimates predicted that the Gross Domestic Product (GDP) to grow by 1% in 2016 and 1.1% in 2017.

Now, the mission team led by Rise Lall anticipate that the Portuguese economy will grow 1.3% in each of the years, slightly above the 1.2% expected by the Government for 2016, but below 1.5% estimated for the next year, according to the State Budget for 2017 (OE-2017).

“The short-term forecasting for Portugal have improved, based on the acceleration of exports observed in the third quarter of 2016. This growth has happened after an economic activity relatively subdued in the previous two quarters”, which describes the Fund.

however, defends the institution headquartered in Washington, dc, it is necessary that the “strong growth” in the third quarter of this year, which was 1.6% yoy from 0.8% in the chain, if you hold in the coming quarters “to conclude that there is an ongoing rapid recovery and sustained”.

THE IMF also highlighted that the labour market “continues to strengthen”, noting that the unemployment rate dropped to 10.5%, returning “to pre-crisis”. The Fund anticipates that the unemployment rate is 11% in 2016 and go down then to 10.6% in 2017.

“Looking forward, the high debt level of the economy and the structural rigidity and persistent should continue to limit the economy to growth at around 1.2% in the medium term”, alert.

in This sense, the IMF argues that in order to increase the potential growth of the Portuguese economy, will require structural reforms, with measures that focus more on promoting an efficient allocation of resources in the economy, job creation, and improve competitiveness.

“In particular, a flexible labour market, where wage increases are aligned with productivity, could boost economic activity and allow for a convergence more quickly with the monetary union”, he considers.