S & P predicts stronger GDP growth and deficit reduction and … – Business Journal – Portugal

The Portuguese economy will grow 1.7% in 2015 and 1.8% in the following years, with the deficit to be below 3% of GDP and public debt to fall every year, according to forecasts Standard & amp; Poor’s

The Standard & amp.; Poor’s anticipates positive developments in key economic indicators in Portugal in the coming years, with the economy the boost growth, while the budget deficit and public debt strengthens a downward trend.

The new forecasts of agency notation for the Portuguese economy in the report published on Friday, in which the rating agency maintains the “rating” unchanged “BB” (two levels below “junk”) and raises the prospect of “stable” to ” . positive “

The S & P revised upwards the projections for the growth of the Portuguese economy, which is one of the reasons justifying the improvement in perspective. The GDP of Portugal, according to the new projections, expected to grow 1.7% this year at 1.8% in 2016, after maintaining the same growth rate.

The upward revision is two tenths face the estimates made last December. “We project that the recovery of the Portuguese economy will be strengthened between 2015 and 2017, with investment recover more strongly even low levels equivalent to 15% of GDP, compared to 23% of GDP before the crisis,” said S & P in the report.

Several institutions have been revised upwards the prospects for the growth of the Portuguese economy, particularly citing the more favorable external environment, with the euro and the falling oil. Just this week the IMF raised the outlook for GDP growth to 1.6%, exceeding the projection of the Portuguese Government, which continues to point to a growth of 1.5% this year.

The S & amp ; P also cited the developments in the foreign exchange market and raw materials to justify the most optimistic view for Portugal. “The positive impact of the recovery of the eurozone economy, coupled with the significant drop in oil prices and the depreciation of the euro, should support exports in 2015, despite the weakness in exports to non-European countries such as Angola,” said S & amp ; P

deficit below 3%

As for the public accounts, the S & amp;. P estimates a decline in the budget deficit to 2.9% of GDP this year, compared with 4.6% last year. The agency’s projections show that the imbalance of public accounts continue to fall, standing at 2.3% in 2016, 1.8% in 2017 and 1.5% in 2018.

Debt public must also present a downward trend, reaching 123% of GDP this year, compared to 128.6% last year. In 2016 is expected to decline to 118.6% of GDP in 2017 to 116.7% of GDP and 114.4% of GDP in 2018.