However, there was a more positive outlook in terms of unemployment with the IMF now putting the end of 2015 unemployment rate at 12.3% and at 11.3% in 2016, down from 13.1% and 12.6% respectively in April.


In turn, the Portuguese government aligns with the IMF over this year’s growth outlook but looks to a 2% rate of growth in 2016 whilst the outgoing administration retained unemployment rate forecasts of 13.2% and 12.7% for this year and next.


The Lagarde led institution does not see inflation returning as a major policy issue in the case of Portugal with the rate expected to close 2015 on 0.6% whilst rising to 1.3% in 2016 and still substantially below the European Central Bank reference rate of 2%.