Portugal’s financial aid program is on track, the International Monetary Fund said in a joint statement with the European Commission and European Central Bank.

“Challenges remain” as the country’s economy contracts this year, the statement said. Portugal should step up its efforts on structural reforms, the IMF, Commission and ECB said.

Portugal’s budget deficit target of 4.5 percent of gross domestic product for this year “remains within reach,” the statement said.

To contact the reporter on this story: Joao Lima in Lisbon at jlima1@bloomberg.net

To contact the editor responsible for this story: Tim Quinson at tquinson@bloomberg.net