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Portugal: 2016 Article IV Consultation--Staff Report

Summary: Portugal has achieved a major economic turnaround since the onset of the sovereign debt crisis. Access to financing was restored following the large fiscal adjustment, the external current account position has moved from a large deficit into surpluses, while the unemployment rate—though still at high levels—declined sharply. The fiscal targets for 2016 and 2017 are appropriately ambitious, but achieving them will require tackling significant implementation challenges.