Portugal Expects Economy to Continue Growing Above EU Average

  • Home >
  • News >
  • Portugal Expects Economy to Continue Growing Above EU Average

Portugal Expects Economy to Continue Growing Above EU Average
Reading time: 3 minutes
Published: 9th November 2018, 6:09pm

Portugal’s economy will continue to grow above the European Union average, helped by the country’s ability to attract investment, Economy Minister Pedro Siza Vieira said. 

“We’ve seen for the past eight quarters Portugal growing above the EU average and we expect this to continue,” Siza Vieira said on Thursday in a Bloomberg Television interview at the Web Summit in Lisbon. “Growth has been driven mostly by exports and investment.”

While the Portuguese government sees the economy expanding 2.2 percent in 2019, the European Commission forecasts a sharper slowdown to 1.8 percent growth next year. That would be slower than its projections for an expansion of 1.9 percent in the euro area and the EU. Tourism has helped fuel the recovery of the Portuguese economy, which last year posted the fastest growth since 2000.

Portugal Will Continue to Grow Above EU Average, Says Economy Minister.

Portuguese Economy Minister Pedro Siza Vieira discusses Lisbon as a tech hub and the Portuguese economy.

Chinese investment, which also helped Portugal when it was going through an international bailout program in 2011-14, remains welcome, Siza Vieira said. In May, China Three Gorges Corp. offered 9.1 billion euros ($10.4 billion) to raise its stake in Portuguese utility EDP-Energias de Portugal SA, which would be this year’s biggest Chinese overseas acquisition, according to data compiled by Bloomberg.

“We are a country open to investment from all walks of the world,” said Siza Vieira. “It’s true that Chinese investment has been significant for the past few years and we welcome it.”

Other Chinese investments in the country include China State Grid’s 25 percent stake in energy grid operator REN-Redes Energeticas Nacionais SA. Fosun Group is the biggest shareholder in lender Banco Comercial Portugues SA with a 27 percent stake, and controls insurer Fidelidade. Chinese President Xi Jinping will visit Portugal on Dec. 4-5, according to Portuguese news agency Lusa.

Brexit Impact

Siza Vieira said the U.K.’s divorce from the EU isn’t “good news” for Portugal, He said there’s been a growing interest of both U.K.-based companies and U.K.-based individuals in moving to Portugal as the Brexit deadline approaches.

The split could trigger a drop of between 15 percent and 26 percent in Portugal’s exports to the U.K. in the medium-to-long term, a study by the Business Confederation of Portugal showed. It could also knock 0.5 percent to 1 percent off Portugal’s gross domestic product, according to the study.

“The U.K. is one of our main trading partners and it’s our first market for the export of services so the impact may be significant,” Siza Vieira said. “The British community has been growing over the past few years, but they have been residents in very significant numbers since the eighteenth century.”



Source: Bloomberg

19th November 2018
Portugal’s prime minister has announced an additional €100…
7th November 2018
LISBON: Portugal plans to build an international launch pad for small…

Buying Property in Portugal

Portugal Homes has very experienced and knowledgeable professionals working with some of the most established and reputable developers Portugal has to offer. Our vast experience allows us to guide you through the best investment choices.

Whether you want a holiday home or an investment property, we select the best units for your profile and take care of all the process from start to finish. Even after the sale! Our After Sales services assume the responsibility of furnishing your property at your taste, taking care of the property in your absence, managing the rentals if you wish to rent your property when you’re not in Portugal and so much more!

To learn more about the Portuguese Non-Habitual Resident Program and our After Sales services, please fill the form below.

It's fantastic how Ryan had complete knowledge regarding Lisbon and dealt with us in a great manner.

Akbar Ali - Investor from Pakistan

Ryan is very professional, but also friendly and knowledgeable about the Golden Visa market. He was also flexible as travelled from the Algarve to meet me in Lisbon to stand in for 1 colleague at short notice.

Investor from UK

Portugal Homes did a great job keeping me up to date with progress on my new home construction purchase by providing regular and comprehensive reports. This helped to ease anxieties about doing a home purchase in the midst of a global pandemic.

Investor from the USA

Although through Zoom, we established great confidence in George's integrity. [It was] important for us to have confidence in the staff's ability to feel aligned in views.

Donald Collie from Australia

The process was very quick and clear. I got all the information I needed in the first hour. The experience was perfect.

Tomoko Inoue from Japan

Overwhelming. Luisa has exceeded our expectations on all levels. Trust was established immediately. Enhanced by super friendly professionalism. The networks to banks, accountants, lawyers was seamless. there is not enough space here to write all the positives, enough to say we are making an offer and we only arrived 4 days ago. Its impossible to improve from perfection!

John Mulroe and Wiebke Bock