While the business climate continues to be positive and the increase in EU transfers should underpin investment, output growth is projected to ease slightly in 2001 and 2002. Enterprises have maintained their borrowing, the depreciation of the euro having limited the degree of monetary firming for the export-oriented sector. Household spending is likely to continue to slow as consumers rein in their borrowing and the saving ratio has stabilised. Overall, with no stimulus expected from public consumption, GDP growth of just below 3 per cent is projected for 2001. Unemployment should stabilise at its structural rate of around 4 per cent.
Data refer to the private consumption deflator.
As a percentage of disposable income. The current account balance is reported under the methodology of the Fifth Manual of the Balance of Payments. Capital transfers which used to be recorded in this balance for Portugal are now excluded.