Bank of Portugal lowers Portuguese economic growth forecast to 0.4 percent this year

31 March 2010

Lisbon, Portugal, 31 March – The Bank of Portugal has lowered its 2010 economic growth forecast for Portugal from 0.7 percent to 0.4 percent, according to its spring report published Tuesday in Lisbon.

For 2011, the review of the previous economic growth forecast is even greater as it has been reduced by 0.6 percentage points – from 1.4 to 0.8 percent.

This “weak growth” is explained by lowered domestic demand, with the central bank changing its forecast to -0.5 percent (previous projection was 0.3 percent) this year and a rise of 0.2 percent in 2011 (previously 1.4 percent).

The Bank of Portugal’s forecasts for 2010 have also been lowered for public consumption (from 0.7 to -0.7 percent) and investment (from -3.4 to -6.3 percent).

Inflation projections for 2010 have been increased to 0.8 percent, as compared to 0.7 percent previously, and lowered for next year from 1.6 to 1.5 percent. (macauhub)