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GDP growth is projected to remain above 2% in 2018 and 2019. The recovery will continue to be supported by past reforms, favourable external trade and domestic demand conditions. Investment activity will be underpinned by an increase in the absorption of EU structural funds in 2018. Consumption growth will remain solid, reflecting strong employment growth.
The stance of fiscal policy will be mildly expansionary in 2018 before becoming broadly neutral in 2019. This is appropriate given the need to maintain medium-term fiscal sustainability while not impeding the economic recovery. Productivity-enhancing reforms that improve skills can reinforce the strength of the recovery. These include further measures to improve the efficiency of the vocational education system and support skill accumulation in general education. The latter would benefit from improved teacher training and better support to students at risk of falling behind.
Economic Survey of Portugal (survey page)