IBERSOL Annual Report and Consolidated Accounts 2017

The year of 2017 The United Kingdom grew about 1.5% in 2017, and it is estimated that the deceleration process will continue in 2018 and 2019, with the rate of in- flation remaining above the objective set by the Central Bank. The Japanese economy increased its growth rate to 1.5% in 2017, as a re- sult of its fiscal policy and the increase in exports. The main risk factors for the global economy are associated to political tensions in Europe and the Korean Peninsula, the uncertainty surroun- ding the Brexit process and a possible slowdown of the Chinese economy and of other emerging economies, in a possible scenario of a decrease in the prices of some commodities and an increase in interest rates. Situation in Portugal Recent data from INE and the Bank of Portugal indicate that the Portu- guese economy grew 2.7% in 2017, above the growth rate in the Eurozone and exceeding the Government’s initial estimate by 1 p.p., thus contribu- ting – albeit in moderate terms – towards the reduction of the wealth differential per capita between Portugal and the Monetary Union. This growth was driven by investment developments and the good per- formance of exports, namely tourism. It is estimated that in 2020 ex- ports will reach a value 68% higher than in 2008. The economy has benefitted from very favourable monetary and finan- cial conditions. According to the forecasts of the Bank of Portugal, ex- pansion will continue over the next three years, although at a gradually slower pace, closer to the average growth of the Eurozone. The unemployment rate is expected to maintain a downward trajectory, falling from 8.9% in 2017 to 6.1% in 2020, with emphasis on the reduction of youth unemployment, which remains very high (above 20%). 26