Portugal: Portuguese economic growth forecast lowered for 2008

9 January 2008

Lisbon, Portugal, 9 Jan – The Bank of Portugal has lowered its forecast for the growth of the Portuguese economy in 2008 by 0.2 percentage points to 1.0 percent, with levels of consumption and exports behind the adjustment.

The projection from the Portuguese central bank, which is included in the Winter economic bulletin published Tuesday in Lisbon, is now the same as that of the European Commission and equals the rate of growth expected for the Euro Zone.

The bank’s projection is also more pessimistic than that of the government, which in the 2008 state budget pointed to growth of 2.2 percent, but is more optimistic than the forecast of the International Monetary Fund (IMF) which expects growth of 1.8 percent.

For 2009, the Bank of Portugal expects the rate of growth to pick up again, by 0.3 percentage points, to 2.3 percent.

Thus, only in 2009 will Portugal see growth of above that of its Euro partners, gaining 0.2 percentage points and returning to real convergence. (macauhub)