Portugal: Third Post-Program Discussions-Press Release; Staff Report; and Statement by the Executive Director for Portugal

April 1, 2016

Preview Citation

Format: Chicago

Portugal: Third Post-Program Discussions-Press Release; Staff Report; and Statement by the Executive Director for Portugal, (USA: International Monetary Fund, 2016) accessed November 26, 2024

Summary

This report discusses key issues related to the economy of Portugal. Highly accommodative macroeconomic conditions have generated only modest growth in the presence of remaining structural impediments. In 2015, low interest rates, a weak euro, and low oil prices remained largely in place, allowing growth to reach 1.5 percent. The 2016 budget proposal appears insufficiently ambitious to put public debt on a firmly downward trajectory, with significant risks to execution. Bank balance sheets need to be strengthened to avoid further negative surprises and protect taxpayers. Envisaged labor and product market policies imply at least a partial reversal of structural measures introduced during the IMF-supported program.

Subject: Bank resolution framework, Banking, Commercial banks, Credit, Financial institutions, Labor, Labor force, Loans, Money, Public debt

Keywords: Budget target, Commercial banks, CR, Credit, EGF privatization process, Europe, Fiscal policy, Global, Growth, Growth potential, ISCR, Labor force, Loans, Profitability indicator, Southern Europe, Upfront cost

Publication Details

Pages:

53
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/097
Stock No:

1PRTEA2016001
ISBN:

9781513541747
ISSN:

1934-7685

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