European Commission says Portuguese growth down 2.9 percent this year

4 November 2009

Brussels, Belgium, 4 Nov – The European Commission on Tuesday downwardly revised its growth forecasts for Portugal this year by 2.9 percent, 0.3 percent in 2010 and one percent the following year.

In its Spring forecast issued 4 May, Brussels had predicted contractions of 3.7 percent for Portugal this year and 0.8 percent in 2010.

Portugal’s jobless rate is set to hit 9 percent this year and stay at this level in 2010, according to Brussels’ Autumn forecast, a more optimistic prediction than the 9.1 percent made earlier this year for 2010 and 9.8 percent in 2010.

Portugal’s budget deficit in relation to GDP will rise sharply from 2.6 percent in 2008 to 8 percent in 2009 and 2010 climbing to 8.7 percent in 2011. Brussels had forecast earlier this year that Portugal’s budget gap would fall 6.5 percent in 2009 and 6.7 percent in 2010.

The European Commission has kept to its basic forecast for GDP shrinkage this year (negative 4.1 percent in the EU and negative 4 percent in the eurozone) but estimates that 2010 will see expansion of 0.7 percent both in the EU and eurozone and 1.5 percent and 1.6 percent, respectively, in 2011. (macauhub)