The Fórum for Competitiveness is more optimistic about economic growth in 2024, as indicated in the third-quarter 2024 “Business Perspectives” report. The Fórum has revised its projections upward, now anticipating GDP growth between 1.7% and 1.9% for 2024, compared to its previous forecast of 1.5% to 1.9%. For 2025, GDP growth is expected to be between 1.8% and 2.2%, aligning with the Government’s 2025 State Budget forecasts, which estimate 1.8% growth in 2024 and 2.1% in 2025.

However, the Fórum highlights risks that could impact these projections. Nationally, there is concern about “high political uncertainty,” with the possibility that the 2025 budget may not be approved, potentially leading to early legislative elections. Such a scenario would be detrimental to economic performance, particularly in the investment sector.

Internationally, the economic situation is improving, though geopolitical risks, especially in the Middle East, are on the rise, with fears of an escalation in the conflict between Hamas and Israel.

Regarding inflation, the Fórum projects a slowdown, from 4.3% in 2023 to a rate between 2.3% and 2.4% in 2024, and between 1.8% and 2.2% in 2025.

Source: https://www.noticiasaominuto.com