Portugal lowers 2026 economic growth forecast to 2 percent
The government cut its growth outlook from 2.3 percent citing severe storms and rising energy costs. It now targets a balanced budget and 2.5 percent inflation.
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Portugal cut its 2026 GDP growth forecast to 2% from 2.3% following severe storms in January and February and rising energy costs. The revision follows a 1.9% expansion last year and is above the 1.8% growth projected by the Bank of Portugal. Investors face a tighter fiscal outlook as the government shifts from a projected surplus to a balanced budget.
