Portugal expected to reach 2013 with its economy growing 1.7 pct

9 March 2010

Lisbon, Portugal, 9 March – Portugal is expected to reach 2013 with its economy growing by 1.7 percent and with a budget deficit of 2.8 percent, according to the macroeconomic scenario outlined in the Stability and Growth Programme.

The document, which is due to be sent to the European Commission, says that the budget deficit will fall from 8.3 percent of Gross Domestic Product this year to 6.6 percent in 2011, 4.7 percent in 2012 and 2.8 percent in 2013, below the 3 percent limit set in the Growth and Stability Pact.

Economic growth, which is always less than 2 percent, will rise to 0.7 percent this year, 0.9 percent in 2011, 1.3 percent in 2012 and 1.7 percent in 2013, the last year to which the document refers.

Public debt, another of the components that agencies and international organisations will be watching closely will continue to rise until 2012, reaching 90.1 percent that year (85.4 percent this year and 88.9 percent the following year).

At the end of the Growth and Stability Programme, Portugal will start reducing its public debt, falling from 90.1 percent in 2012 to 89.3 percent in 2013.

In terms of public debt, Portugal has the fourth largest figure on the list in 2011 (88.9 percent of GDP), after Greece (120.6 percent), Italy (116.5 percent) and Belgium (101.4 percent). (macauhub)