Economy minister admits growth over 2% a tall order

Portugal’s Minister of the Economy and Territorial Cohesion, Manuel Castro Almeida, has admitted that the government’s target for growth of over 2% in 2025 might be difficult because of the 15% US tariffs.

In an interview with the business daily Negócios, the minister said: “This is our goal but the tariffs and the way they have been introduced are an additional complication and are not helping or making things easy”, adding that a “a good government must face difficulties and overcome them”.

In this sense, “the first priority” was to support internationalisation, with the Government’s objective of increasing the weight of exports in the Gross Domestic Product (GDP) from the current 46% to 50% and gradually moving to 55%.

Manuel Castro Almeida promised to increase the amount of financial support offered to help companies export and increase overseas sales, although by how much he didn’t say.

“If there are difficulties in exporting to the United States, we have to diversify and find other alternative markets,” he said, identifying the Mercosur bloc as a “great opportunity” to be explored.

“There is no other way to increase the country’s economic growth and wealth if not through exports,” because “the domestic market is almost always the same. To grow the market, we need to export.”