Portugal

The Portuguese economy performed strongly in 2017. Investment and exports were the key drivers of growth. Labor market conditions continued to improve, with falling unemployment and broad-based employment creation. The underlying fiscal balance posted a strong improvement, which can be attributed to buoyant economic growth, controlled budget execution, and falling interest costs, and has contributed to more favorable financing terms throughout the economy. Stability and confidence in the banking system strengthened following successful efforts by banks to raise capital and reduce NPLs, and the sale of Novo Banco in 2017.