Sovereign rating of the Republic of Portugal

In its June review, EthiFinance Ratings affirms the Republic of Portugal’s unsolicited credit rating in BBB for the positive performance of the Portuguese economy in both 2021 and the first quarter of 2022, mainly explained by the recovery of domestic demand. In this regard, the report supports the 5.8% growth forecast by the European Commission for the Portuguese economy, a figure already advanced in January’s review by the European credit rating agency. The report also values the strength of the Portuguese labor market, whose unemployment rate fell to 5.9% at the end of the first quarter, one point lower than at the end of last year. However, the European rating agency warns of the risk posed by the high levels of inflation and public debt (120.7% of GDP by the end of 2022).