The finance minister believes that GDP growth of 6.7% gives “more confidence” in 2023 results.

The finance minister said on Tuesday that growth of 6.7% in 2022, the highest in 35 years, gives confidence in the progress of the economy this year, acknowledging that the results are better than forecast.

Speaking to Lusa, Fernando Medina said the growth data gives “more confidence in progress in 2023.”

Portugal’s gross domestic product (GDP) grew by 6.7% in 2022, above the 6.5% forecast in the state budget for 2023 (OE2023), the National Institute of Statistics (INE) said on Tuesday.

In the fourth quarter of 2022, GDP grew by 3.1% year on year (down from 4.9% in the third quarter) and 0.2% year on year (0.4% in the previous quarter).

“Closing 2022 without a recession, without a downturn in the economy means that we will have more room to meet the targets for 2023,” the minister said.

Highlighting that 2022 had “the biggest economic growth in 35 years”, Fernando Medina recalled that Portugal is one of six of the 12 eurozone economies that have already published results showing positive results.

“This means that, in international comparison, we will end 2022 with a growth rate that will be significantly twice that of the Eurozone, making Portugal a country that at the end of 2022 has already recovered well from the pre-2022 pandemic level. Thus, we 2.6% higher than the level of the 2019 pandemic, which does not happen with other countries,” he stressed.

Rejecting a new forecast for 2023, the official admitted that the government will update the forecasts in the Stability Program: “Only then will we make new estimates on how the Portuguese economy will progress,” he said.

“These data, which came out for 2022, gives us confidence that the results in 2023 will be better than our forecasts. This is very important data at the moment. Safe steps, consistent steps,” he said.