Álvaro plays down Centeno's warnings but warns that the low level of public investment in recent years is unsustainable

The Governor of the Bank of Portugal, Álvaro Santos Pereira, projects an upward revision of economic growth to 2.3% for 2026, largely driven by PRR funds. However, he warns that public investment is unsustainably low, noting a projected 14% drop in public investment next year once European funds conclude, and emphasizes the need to prioritize infrastructure and school investment to prevent further decline in public services.