Lisbon, Portugal, 30 Nov – The Organization for Economic Cooperation and Development (OCDE) said Tuesday the Portugal’s Gross Domestic Product (GDP) will increase by 1% in 2006, the poorest performance forecast for the organization’s 30 member countries.
For 2005 the OECD increased its GDP forecast for Portugal from the 0.7% predicted in May to 0.8%.
Only Germany, Italy and Switzerland are expected to register growth of less than 2% in 2006, but will still perform better than Portugal, according to the OECD figures.
The forecast for 2007 is of GDP growth of 1.8% although Portugal’s performance is still expected to be the poorest among the OECD countries.
In its report on Portugal the OECD says that the Portuguese economy started recovering in the first half of 2005, driven by exports and household spending.
“The growth of the [Portuguese] economy should gain momentum in 2006 and 2007, but will remain behind the Euro zone, with the economy still operating well below its potential,” the report says.
The OECD forecasts economic growth in the Euro zone of 1.4% in 2005, 2.1% in 2006 and 2.2% in 2007. (macauhub)