LISBON, March 29 (Xinhua) -- The Bank of Portugal on Wednesday upgraded its growth forecast for this year and the next two years, estimating that the gross domestic product (GDP) will grow 1.8 percent in 2017.
According to the central bank's latest outlook, the 2017 forecast for economic growth rose from 1.4 percent forecast in December.
Forecasts for the next two years also improved, with the bank expecting the economy to grow 1.7 percent in 2018 and 1.6 percent in 2019, an upward revision of 0.2 and 0.1 percentage points respectively.
The improved forecast is due to the a strong growth in exports, according to the bank, with exports of goods and services being "one of the most remarkable aspects of the adjustment process of the Portuguese economy."
The central bank also expects the surplus in trade balance in goods and services to drop from 2.2 percent of GDP in 2016 to 1.4 percent in 2017 and 1.3 percent in 2018, before recovering slightly to 1.4 percent of GDP in 2019.
The bank expects the inflation rate to be 1.6 percent in 2017, 1.5 percent in 2018 and 1.5 percent in 2019.
