Portugal to invest 43 billion euros in large infrastructure by 2030, PM says

The much-anticipated high-speed rail connection is projected to cost 4.5 billion euros, with another two billion euros set aside for expansion of deepwater ports in Sines, Leixoes and Lisbon. The plan, already approved by parliament, is due to be implemented from January 1, 2021, financed with 12 billion euros from the national budget, another 12 billion from European structural funds, 3.3 billion from recovery funds and 14.2 billion from private investment, Costa said.

Portugal's prime minister announced 43 billion euros of public infrastructure investment on Thursday, including a high-speed rail link between Lisbon and the country's second largest city, Porto, to be carried out by 2030.

Investments will focus on transport and energy, Prime Minister Antonio Costa said, with a total of 21.7 billion euros earmarked for transport projects and 13 billion euros directed towards clean energy projects largely centred around hydrogen production. The much-anticipated high-speed rail connection is projected to cost 4.5 billion euros, with another two billion euros set aside for expansion of deepwater ports in Sines, Leixoes and Lisbon.

The plan, already approved by parliament, is due to be implemented from January 1, 2021, financed with 12 billion euros from the national budget, another 12 billion from European structural funds, 3.3 billion from recovery funds and 14.2 billion from private investment, Costa said. "Economic development involves an increase in the production of tradeable goods and services, giving us greater external competitiveness and increasing exports," Costa said at a news conference.

Portugal's government predicted that the country's gross domestic product, projected to fall by 8.5% in 2020 - the worst recession in nearly a century - will bounce back with 5.4% growth in 2021. Exports are expected to increase by 10.9% after a sobering 22% drop in 2020, with investment expected to grow 5.3% after this year's 7.4% fall.

In 2019, the economy grew 2.2%, helping Portugal to reach its first budget surplus in 45 years, equivalent to 0.1% of GDP. (By Sergio Goncalves, Editing by Victoria Waldersee, Alexandra Hudson)

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