Portugal’s economic freedom score is 63.4, making its economy the 72nd freest in the 2018 Index. Its overall score has increased by 0.8 points, led by significant improvements in scores for the fiscal health and government spending indicators that offset declines in property rights and business freedom. Portugal is ranked 35th among 44 countries in the Europe region, and its overall score is below the regional average but above the world average.

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Portugal Economic Growth

Another year of healthy economic growth is expected in 2018, thanks to higher foreign investment, the flourishing tourism industry and resilient private consumption supported by strong job creation that should lift wages. A greater inflow of foreign investment is also expected to continue driving the housing boom. Nevertheless, growth is expected to moderate from the previous year, owing to an anticipated slowdown in domestic demand. FocusEconomics panelists expect the economy to grow 2.2% in 2018, which is unchanged from last month’s forecast, and 1.9% in 2019.

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