Portugal: Central Bank lowers Portuguese 2008 economic growth forecast

16 July 2008

Lisbon, Portugal, 16 July – The Bank of Portugal Tuesday lowered its growth forecast for the Portuguese economy in 2008 to 1.2 percent, as compared to a previous figure of 2.0 percent forecast in January.

According to the Summer Economic Bulletin, the new projection is due to a lowered forecast for investment and exports.

Exports are now expected to rise by 4.4 percent, as compared to 4.9 percent previously, and investment is expected to se growth of just 1 percent, against the 3.3 percent previously forecast.

The Bank of Portugal also raised its inflation forecast to 3 percent as compared with 2.4 percent announced in January.

The central bank also lowered its projection for 2009, pointing to export growth of 4 percent, or two percentage points less than in its previous forecast.

In 2009 the central bank expects investment to rise by 1.2 percent, as compared with the 3.1 percent is had previously expected. (macauhub)