OECD and Portuguese central bank forecast worsened recession in Portugal

13 January 2012

Paris, France, 13 Jan – The advanced indicator from the Organisation for Economic Cooperation and Development (OECD) for Portugal posted a drop in November for the 10th consecutive month, the OECD said in a statement issued Thursday.

The fall in the OECD’s indicator in November means that the Portuguese economy is likely to continue on its downward trend over the next few months.

In its turn, the Bank of Portugal in its Winter Economic Bulletin published a more pessimistic projection than the Portuguese government for this year, expecting greater austerity, more recession and less employment.

The document, which updates projections for the Portuguese economy for this year and for 2013, points to a recession of 3.1 percent, 0.1 percentage points above the projections of the “troika” (IMF, World Bank and European Union) and the government (3 percent) and the same as the government’s estimate for this year in an internal Finance Ministry document.

In relation to 2013, the Bank of Portugal projects that the Portuguese economy will see some growth, although marginal, of around 0.3 percent. (macauhub)