PRR: IMF warns implementation is “crucial” for Portugal in the medium term – Economy
“The implementation of the Next Generation EU fund [fundo de recuperação europeu] it will be crucial to increase growth and give a strong impetus, in the medium term, in terms of productivity improvements, “said the official at a press conference.
The economist answered a question from Lusa at a press conference held from Washington, regarding the prospects for the European economy.
Thus, in the medium term, “Portugal is immensely helped by NextGen EU”, as in addition to boosting growth and productivity, it will also do so with “investments in the ‘green’ transition and digitization of the economy”, as well as “through the necessary reforms that the Government implemented”.
“It will be an important part of a response to the crisis next year, but also very important in the medium term,” he reiterated.
Also questioned about the different functions of the IMF and the Government regarding the Portuguese economy – the IMF forecasts growth of 4.4% this year and 5.1% next year, the Government 4.8% and 5.5%, respectively – the responsible devalued.
“What we see across Europe is a lot of uncertainty about projections and changes. So I’m not surprised that Portugal is one of many countries where we have different options”, Alfred Kammer also recalling the “different types of data” taken into account for as comments.
The director of the IMF considers that the Portuguese economy “responded to the current measures and is going from a response to a strong recovery from the second half of this year, continuing into 2022”.
As for the labor market, the director referred that the IMF studies point to a release of labor in low-skilled sectors such as tourism, a sector in which “Portugal has much of its economy invested” and which was “hit in a way particularly strong”.