Economic growth will allow Portugal to meet the targets in the 2017 Budget, the Xinhua news agency reports.

The news outlet reported the details of an address to the nation by Portuguese President Marcelo Rebelo de Sousa on Wednesday.

In it, Mr Rebelo de Sousa said the country faced four challenges: global uncertainties, consolidation in the banking system, slack economic growth and the need for more exports and investments.

“We need more economic growth to guarantee the stability of budgetary rigor,” he said.

The 2017 Budget was approved by the parliament last month. It assumes the country’s gross domestic product will grow by 1.5 percent next year, with a small deficit equivalent to about 1.6 percent of GDP.