Return of “normal” growth of Portuguese economy only in 2 to 3 years

13 February 2006

Lisbon, Portugal, 13 Feb – The Portuguese economy will only return to “more normal” growth rates in two to three years, the governor of the Bank of Portugal, Vítor Constâncio said Friday in Lisbon.

Speaking at the opening of a conference organized by the central bank, Constâncio said that higher growth rates than those recently registered would not mean a return to convergence of the Portuguese economy with those of its European partners.

The Bank of Portugal recently lowered its forecast for growth of the Portuguese economy, in its January economic bulletin, saying it expected gross domestic product (GDP) growth of 0.8 percent in 2006 and 1 percent in 2007.

According to Constâncio, the Portuguese economy needs, “a real adjustment to change its production structure,” which requires “salary realism,” to make salary increases compatible with productivity and increases registered by Portugal’s economic partners. (macauhub)