The Bank of Portugal expects the Portuguese economy to grow at a rate of 2.3 percent in 2018, it announced in its quarterly statement on Thursday.

"The Bank of Portugal's forecast for economic growth remains the same as in June's economic bulletin, but with amendments to various components: exports and gross fixed capital formation is revised down, while private consumption is now placed higher," read the bank's statement.

Improved private consumption expectations are related to improved job prospects. The central bank predicted 7 percent unemployment by year end, compared to its 7.2 percent forecast in June.

"Salaries should climb, propelled by reductions in the unemployment rate, the effects of an increase to the national minimum wage and a gradual unfreezing of public sector pay rises," the central bank explained.

The bank thus revised up its forecast for annual private consumption growth to 2.4 percent from 2.2 percent in June.

Private consumption accounts for around two-thirds of GDP, but the bank expects a dip in exports and investment to cancel out any dividend.

Goods and services exports are now forecast to grow at a rate of 5 percent, down from the 5.5 percent predicted in June. In 2017, exports grew at a rate of 7.8 percent.

Hence there is no change to the bank's headline GDP forecast of 2.3 percent. In 2017, the Portuguese economy grew at a rate of 2.7 percent, versus 1.5 percent in 2016.