With the new projections, the growth of the Gross Domestic Product (GDP) is revised upwards by 0.9 percentage points in 2021 and by 0.4 percentage points in 2022, compared to previous March forecasts, with the BdP estimating that the economy regains the 2019 level in the first half of 2022.
In the June Bulletin, Banco de Portugal justifies this revision with the “more positive prospects for activity in the short term, essentially related to the improvement in the confidence of economic agents, which translates into a faster than expected reaction from the economic activity to the lifting of restrictions from March 2021”.
In 2023, domestic demand and exports present similar contributions to activity growth, highlights the BdP, which expects private consumption to return in 2022 to the levels registered before the pandemic.