Portugal: European Commission lowers economic growth forecast for Portugal in 2008

29 April 2008

Brussels, Belgium, 29 April – The European Commission has lowered its 2008 economic growth forecast for Portugal to 1.7 percent and 1.6 percent for 2009, according to its spring report published Monday in Brussels.

The EC’s autumn projections published in November, expected growth of 2.0 percent for Portugal in 2008, whilst Lisbon forecast a rise of 2.2 percent for this year in its Stability Programme.

Brussels noted that Portugal’s current gross domestic product (GDP) growth “seems to be falling” due to the slowdown in economic activity of its major econmic partners, the effects of persistent diusturbances in the credit market and high energy and food prices.

The reduced GDP growth projection is not, however, as pessimistic as that of the International Monetary Fund (IMF) which on 9 April forecast growth of 1.3 percent in 2008 in Portugal and 1.4 percent for the European Union as a whole.

Economic growth in the European Union is expected to fall to 2.0 percent in 2008 and 1.8 percent the following year, according to the European Commission.

In 2007, growth of the entire EU economy was 2.8 percent. (macauhub)