Portuguese economy expected contract 3.3 pct this year

24 February 2012

Brussels, Belgium, 24 Feb – The performance of the Portuguese economy this year will be worse than expected, according to the latest projections from the European Commission published in Brussels pointing to a contraction of 3.3 percent after an economic downturn of 1.5 percent in 2011.

These projections for Portugal are the worst published so far for the country, they exceed the latest forecasts from the Portuguese government – contraction of 3 percent – and the Bank of Portugal – minus 3.1 percent.

The projection for the Portuguese economy is one of the worst in the whole European Union, exceeded only by the 4.4 percent contraction expected for Greece, which follows a 6.8 percent fall in GDP in 2011.

This worsening of prospects for Portugal is part of a general downward review of economic growth, both in the 17 Euro countries, and in the 27 European Union countries.

For the European union as a whole, the Commission forecasts no GDP growth (0 percent), which is a downward review of 0.6 percentage points against projections made in November.

In the Euro Zone, the projection is one of recession – minus 0.3 percent – which is a 0.8 percentage points less than the forecast made three months ago. (macauhub)