2022-01-31-牛津经济研究院-Portugal_Costa_s_election_win_offers_hope_for_political_stability_2页_213kb

Socialist Party's surprising win in Portugal's snap election on January 30, 2022, gives hope for political stability. This majority result simplifies government formation, speeds up budget approval, and aids implementation of the EU's Recovery and Resilience Facility funds. The election also boosts investor confidence due to Prime Minister António Costa's strong fiscal management, but his record on structural reforms is less impressive, creating an opportunity to address economic weaknesses. Portugal's GDP growth is expected to exceed 5% in 2022, supported by good economic performance and positive trends in recovery funds execution. However, high debt levels remain a concern, with a target to reduce debt-to-GDP ratio further, though long-term reform challenges persist.