This report provides a general overview and assessment of the Portuguese economy under its 2011-2014 EU/IMF adjustment programme and the remaining challenges ahead.

Overall, despite challenging circumstances, Portugal’s implementation of its programme over the last three years has succeeded in improving public finances, stabilising the financial sector, and setting the economy onto a path towards recovery.

The economy has posted positive growth rates in several quarters and confidence among businesses and consumers appears to be rising.

Nevertheless, the Portuguese economy remains vulnerable. Public finances need to consolidate further and more reforms are needed to safeguard financial stability and improve the competitiveness, agility and resilience of the economy.

This assessment also includes the findings of a joint European Commission (EC)/ European Central Bank (ECB)/ International Monetary Fund (IMF) staff mission to Lisbon from 22 April to 2 May 2014 in connection with the 12th Programme review that was not concluded. Developments in the months since the end of the Programme are also taken into account.