According to recent data from June 2021(*), the Portuguese economy is expected to grow by 4.8% in 2021, higher than previously projected, pointing to expansions of 5.6% in 2022. With these new projections, Gross Domestic Product (GDP) growth is revised upwards by 0.9 percentage points in 2021 and by 0.4 percentage points in 2022, compared to the previous March forecasts, with the recovery of the economy in Portugal estimated to be at the level of 2019 in the first half of 2022. This revision carried out at the end of the first half of 2021 by Banco de Portugal took into account the "more positive prospects for activity in the short term, essentially related to the improved confidence of economic agents, which translates into a faster than expected reaction of Portugal economic activity to the lifting of restrictions from March 2021 onwards". According to the indicators, the recovery of Portugal’s economy is "driven in the second quarter of 2021 by domestic demand, particularly private consumption. However, in the second semester of 2021 and in 2022, "the contribution of exports is more significant," reflecting the recovery in the services component. It should also be noted that according to the Portuguese Government, economic growth in Portugal may reach 5% this year, above the 4% expected in the Stability Programme (**).

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