Bank of Portugal increases forecast for GDP growth in 2006 to 1.2 percent

18 July 2006

Lisbon, Portugal, 18 July – The Bank of Portugal Monday increased its forecast for economic growth in 2006 from 0.8 percent to 1.2 percent, as published in its Summer Economic Bulletin.

The same rise was forecast for gross domestic product (GDP) growth in 2007, which changed from 1.0 percent in the Winter Bulletin to 1.5 percent.

The Bank of Portugal said that the projection included the potential rises in the price of oil, interest rates and exchange rates.

These forecasts follow GDP growth of 0.3 percent in 2005.

For the immediate future, the central bank expects that divergence between the euro zone, which has been felt since 2002, will continue. (macauhub)