The Portuguese economy is expected to grow by 1.5% in 2024, according to
forecasts by the Bank of Portugal. This growth will be lower than in 2023, but still higher than the euro area average, which is expected to grow by 1.3% according to the forecast.
Economic growth in 2024 will be underpinned by the recovery in tourism, which is expected to continue to grow, albeit at a slower pace than in 2023. Private investment is also expected to contribute to growth, supported by the European funds of the Recovery and Resilience Plan (RRP).
However, economic growth in 2024 will be constrained by some factors, such as inflation, which is expected to remain elevated, and geopolitical uncertainty, which could affect consumer and business confidence.
Inflation is expected to remain one of the main challenges for the Portuguese economy in 2024. Average inflation is expected to be around 4%, which will have a significant impact on the purchasing power of Portuguese households.
The Government has Portuguese been taking measures to mitigate the impact of inflation, including by reducing VAT for some essential goods and services. However, these measures will have a limited impact, so inflation will continue to be a pressure factor for Portuguese households.
In summary, the financial and social forecast for Portugal in 2024 is for moderate economic growth, but still higher than the euro area average. However, this growth will be constrained by factors such as inflation and geopolitical uncertainty. Inflation is expected to remain a challenge for Portuguese households, and rising poverty is a real concern. Real Easy is aware of this economic situation and seeks to develop information from its clients in order to obtain, among other things, a correct market value for their properties.
