Portuguese economy should grow 0.7 percent this year and 1.4 percent in 2011

13 January 2010

Lisbon, Portugal, 13 Jan – The Portuguese economy should grow 0.7 percent this year and 1.4 percent in 2011, the Bank of Portugal has announced, basing its forecasts on “a gradual and moderate recovery of activity worldwide”.

The central bank also maintained its forecast in the last bulletin on the economy in 2009, which estimated a 2.7 percent contraction.

The Winter Economic Bulletin released on Tuesday indicates that the recovery should be felt in private consumption (-0.9 percent in 2009 to 1.0 percent this year), internal demand (0.3 percent in 2010, -2.9 percent in 2009) and inflation, which should return to positive ground, increasing by around 0.7 percent (versus -0.9 percent estimated for 2009).

The Bank of Portugal emphasises that these projections should only be viewed in light of the international crisis, also because the Portuguese economy has been showing signs of “a number of structural weaknesses, which have limited its growth potential during the last decade.”

Exports and imports should also be back on positive ground, respectively growing by 1.7 percent (versus -12.5 percent estimated for 2009) and 0.3 percent (versus -10.8 percent). (macauhub)

MACAUHUB FRENCH