Portugal: Second Post-Program Monitoring Discussions - Press Release; and Staff Report

Portugal's economic recovery remains on track, boosted by a generally supportive external environment and a rebound in confidence. Despite recent market volatility related to Greece, Portugal continues to benefit from favorable commodity prices, low interest rates and a weaker euro. Real GDP growth is projected at 1.6 percent for 2015, supported by a pickup in exports and a welcome upturn in investment. But growth is expected to moderate over the medium term as cyclical factors weaken and still high public and private debt constrain the pace of recovery.