FRANKFURT: Portugal's economic growth will be held back this year by the need to reduce private sector debt and a negative contribution from net exports, the European Commission and the European Central Bank said on Thursday.
"Looking ahead, economic activity is expected to expand at a moderate pace, held back by persistent deleveraging pressures in the private sector," the institutions said following a post-programme review.
"Risks to the outlook are tilted towards the downside and are, in particular, related to uncertainties to the external environment."
They added that progress in structural reforms lost momentum in 2015 and Portugal needs to step up its efforts to further enhance medium-term growth prospects, job creation and competitiveness.
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