IMF raises Portugal growth forecasts for 2026 and 2027

The International Monetary Fund (IMF) has revised its economic growth forecasts for Portugal upwards, now projecting 2.1% for 2026 and 1.9% for 2027, though these figures remain below the Portuguese government's expectations. The upward revision adds 0.4 percentage points to the 2026 forecast and 0.3 points for 2027 compared to June projections. The government's state budget anticipates 2.3% growth this year and 2.1% next year. The IMF also forecasts Portuguese inflation at 3.2% for 2026, lower than previously expected, but raised its 2027 inflation projection to 3%. Globally, the IMF slightly improved its 2026 growth forecast to 3.1%, maintaining 3.4% for 2027. The eurozone outlook was also upgraded to 1.1% for 2026. The IMF projects Portugal's unemployment rate will hold steady at 5.9% through 2027.