IMF praises Portugal's recovery

Portugal’s approach to PPPs has played a key role in improving its economy in the wake of the global financial crisis, the International Monetary Fund (IMF) has said.

In its fiscal transparency evaluation for the country, the IMF said improvements have been made on the “quality, transparency, and comprehensiveness of information on fiscal developments”, including on PPPs.

The report welcomed the introduction of the new legal and institutional framework for PPP that was created in 2012, including the creation of a central monitoring unit.

However, the report also warned that Portugal’s economy remains fragile, with PPPs still a “significant source of fiscal risks” in the country.

“Relative to its GDP, Portugal had the highest cumulative investment in PPPs in the EU in the past decade,” the report added.

It also warned that the new monitoring body is excluded from monitoring a large number of PPPs, which has reduced the agency’s efficacy.