We kept our GDP growth forecasts for Portugal broadly unchanged at 2.5% for 2025 and 2% for 2026. Portugal's government unexpectedly collapsed, with a snap election likely to occur in May. We don't think the renewed political crisis will derail an otherwise solid economic outlook supported by strong income growth. However, the projected quick step-up in the execution of the EU's Recovery and Resilience Facility is now more uncertain.
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