Overall, Europe will record an economic growth of 2% whereas the Emerging Europe, a region that also includes Romania, will register a GDP advance of 3%.
The International Monetary Fund (IMF) has raised its projections for the Portuguese economy in 2017, and now expects growth of 1.7% this year, compared to a previous projection of 1.1%, but slightly below the government forecast.
"In its latest World Economic Outlook, the Fund said that chronically weak advanced economies were expected to benefit from a "cyclical recovery in global manufacturing and trade that started in the second half of 2016".
But it upgraded China's growth forecast in 2017 and 2018 to 6.6 and 6.2 percent, respectively. The country is expected to log 6.6 percent growth in 2017 with its economy to expand 6.2 percent in 2018. "Stronger activity and expectations of more robust global demand, coupled with agreed restrictions on oil supply, have helped commodity prices recover from their troughs in early 2016", wrote Maurice Obstfeld, IMF chief economist and author of the report.
Arriving on the same day British Prime Minister Theresa May announced a snap general election, the report states that Britain's economy is expected to grow by 2% this year, up from its 1.5% estimate in January. IMF Managing Director Christine Lagarde warned last week that a "sword of protectionism" hung over a brightening global outlook.
The IMF points to improved commodity prices.
Trump has vowed to roll back the Dodd-Frank Act, a set of laws enacted after the financial crisis to discourage excessive risk taking, though the president has yet to outline his plan in full.
Despite the signs of strength, the International Monetary Fund believes many countries will continue to struggle this year with growth rates significantly below past readings. Its forecast for the global economy in 2018 remains unchanged at 3.6 percent.
The IMF pointed out that China's desirable rebalancing process continues, as seen in a declining current account surplus and an increased GDP share of services, but it said the growth has remained reliant on domestic credit growth so rapid that it may cause financial stability problems down the road. In order to protect against these risks, policy makers should adopt a "do no harm" approach, avoiding new barriers to worldwide trade, keeping financial regulations in place, and boosting investment and growth by investing in people and encouraging multilateral cooperation, the IMF said.