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Bank of Portugal holds 2026 growth forecast at 1.8% and cuts budget deficit view to 0.2% of GDP

The Bank of Portugal kept its 2026 growth forecast unchanged at 1.8% and lowered its budget deficit projection to 0.2% of GDP. It also raised its 2024 inflation forecast to 3.1%. The central bank said higher oil prices linked to the Middle East conflict are a key risk, lifting energy costs, weakening external demand and tightening financial conditions.
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