With the United States’ ‘blockade’ of the Strait of Hormuz adding to the effects of its war on Iran, the IMF has adjusted global growth estimates for this year downwards, taking Portugal’s along with it.
For the time being, the Portuguese economy – tipped previously to grow by a substantial 2.1% – has been cut back to a projection of 1.9%.
The new figure also falls substantially short of the government’s forecast of 2.3% Gross Domestic Product (GDP) growth for this year, as inscribed in the 2026 State Budget.
The IMF now predicts a 1.8% growth rate for Portugal in 2027, according to the World Economic Outlook (WEO) update released yesterday.
The report adds that the IMF would have revised forecasts upwards had it not been for the conflict in the Middle East, which is having untold repercussions.
Global growth should reach 3.1% in 2026 and 3.2% in 2027 under the new baseline scenario.
These estimates suggest a “slower [pace] than the recent rate of about 3.4% in 2024-2025,” with growth expected to stabilise at this level in the medium term (if nothing else deeply damaging happens).
Regarding the Eurozone, the IMF anticipates economic growth will decrease from 1.4% in 2025 to 1.1% in 2026, and 1.2% in 2027 – again, depending on nothing ‘more cataclysmic’ happening.
Source: LUSA
