Portugal Projects 2% Economic Growth in 2024

Portugal's government forecasts a 2% economic growth for both 2024 and 2025, alongside budget surpluses of 0.3% and 0.2% of GDP, respectively. Despite increased public sector spending, primary expenditures are projected to grow by 8% in 2024 and 4-5% in 2025, while tax revenues are expected to rise between 4% and 4.5% annually. The projections represent a slight improvement over earlier estimates but are still viewed with skepticism by minority parties opposed to the government's fiscal proposals. The government must submit its budget proposal by October 10, as it faces challenges in parliament, including negotiations with opposition parties to secure approval. Additionally, interest costs on public debt are expected to rise significantly, by €500 million in 2024 and €300 million in 2025. Analysts remain concerned about the implications of these figures on the overall economic health and stability of the country.