Portugal to see worst economic performance in Euro Zone in 2012

11 November 2011

Brussels, Belgium, 11 Nov – The Portuguese economy is expected to see a downturn of 3.0 percent in 2012, the biggest in the whole of the Euro Zone, and post growth of 1.1 percent in 2013, according to the Autumn projections from the European Commission published Thursday in Brussels.

For 2011, the European Commission projects that the Portuguese economy will contract by 1.9 percent, in line with the Portuguese government’s projection.

The projections from the Commission foresee a substantial drop in the Portuguese economy’s net financing needs with the unemployment rate rising slightly to 13.7 percent in 2013, following a rate of 13.6 percent in 2012.

In terms of per capita GDP, Portugal will be overtaken by Slovakia in 2013 and will be ranked 20th out of the 27 European Union countries.

Per capita GDP, measured by purchasing power parity, will this year fall to 71.3 percent of the EU 15 average, and in 2012 the figure is expected to fall again to 69,1 percent, and remain at this level in 2013.

The report also showed that whilst Portugal would move away from the EU 15 average, all other countries would get closer and in 2004 the average would be at 88.5 percent and in 2013 at 91.4 percent.

In line with the drop in Gross Domestic Product, public debt as a percentage of GDP is expected to continue rising and the budget deficit will total 3.2 percent in 2013, without discount debt servicing.

Projections for Portugal’s inflation rate in 2011, 2012 and 2013, are 3.5 percent, 3.0 percent and 1.5 percent, respectively. (macauhub)