23 Mar 2015
Outlook for Portugal upgraded to "positive" from "stable" – S&P
FXStreet (Mumbai) - Standard & Poor's international ratings agency has raised its outlook for Portugal to "positive" from "stable", noting further economic progress in the euro area member which has been dependent on international rescue funds following the global financial crisis.
The agency noted in its statement, "The outlook revision reflects our view of the gradual recovery of Portugal's real and nominal growth prospects, alongside policymakers' commitment to consolidating public finances over the medium term,"
"We now believe that Portugal's real GDP will likely rise on average by about 1.8% per year during 2015-2016, on average about 0.2 percentage points higher than we projected at our last review in November,"
"Although substantial external vulnerabilities remain, renewed external and domestic demand, alongside slowly increasing inflation, should support Portugal's budgetary consolidation process."
The positive outlook means that the agency could raise the country's sovereign credit rating, currently at "BB/B," within the next 12 months.
The agency noted in its statement, "The outlook revision reflects our view of the gradual recovery of Portugal's real and nominal growth prospects, alongside policymakers' commitment to consolidating public finances over the medium term,"
"We now believe that Portugal's real GDP will likely rise on average by about 1.8% per year during 2015-2016, on average about 0.2 percentage points higher than we projected at our last review in November,"
"Although substantial external vulnerabilities remain, renewed external and domestic demand, alongside slowly increasing inflation, should support Portugal's budgetary consolidation process."
The positive outlook means that the agency could raise the country's sovereign credit rating, currently at "BB/B," within the next 12 months.