Portugal’s rate also showed the fourth largest year-on-year increase, after Greece, Cyprus and Spain, Eurostat said Tuesday.

When asked about the 17.5% jobless rate revealed by Eurostat for February, Pereira said the government would do everything in its power to “boost the economy and investment and create jobs”.

This is the first month since August that Portugal’s jobless rate, as calculated by Eurostat, has not risen, although it compares with a rate of 14.8% in February 2012.

The head of the International Monetary Fund’s mission to Portugal said the country’s deficit targets had been revised to avoid further recession and unemployment.

Despite the economy being expected to slump further, the IMF says it still expects a recovery late in the year.

The Portuguese minister of finance says the GDP will drop 2.3% and that unemployment might reach 19%.

Portugal’s employment numbers are at the lowest level in 17 years, according to figures released by the Portuguese National Statistics Institute.

Portugal now records the third highest rate of unemployment in the eurozone trailing only Greece and Spain with their rates both in excess of 26%.

World-renowned Columbia University economist Ricardo Reis shared his views on the Portuguese economy with PDV ahead of the troika’s seventh quarterly assessment, expounding how the country could bolster growth and why its bailout targets should be eased.