Portuguese economy to continue diverging from European partners until 2020, OECD

21 April 2006

Lisbon, Portugal, 20 April – The Portuguese economy will continue to grow at a slower rate than that of its Euro Zone partners until 2010, although a slight increase in economic activity may be expected, according to the Organization for Economic Cooperation and Development (OECD).

In a report published Thursday about the Portuguese conomy, the OECD said that Portugal is expected to grow by an average of 1.7 percent per yaer between 2005 and 2010, a figure below the 2.1 percent average expected for the Euro Zone (minus Luxembourg).

Between 2000 and 2005, the real divergence between Portugal and the 12 Euro Zone countries was also felt, as Portugal’s gross domestic product (GDP) grew by an annual average of 0.6 percent, less than half the rate of the euro Zone (1.4 percent).

The OECD pointed out that its figures were not considered forecasts, but were rather scenarios based on a number of presumptions that could easily be changed within the time period mentioned.

In 2006 and 2007, the Portuguese economy should recover, according to the OECD, but a at a “moderate rate” of growth with continued increase in consumption, investment and exports.

The new report did not set out annual figures, but at the end of November, the OECD’s fall projections pointed to annual GDP growth of 1 percent in 2006.

According to government figures, in 2005 Portugal’s GDP expanded by 0.3 percent. (macauhub)