Contraction of Portuguese economy to be greater than expected this year and in 2013

30 March 2012

Portugal’s economy will this year see a contraction of 3.4 percent, which is more than the previous estimate of -3.1 percent, according to the latest projections from the Bank of Portugal in its Spring Bulletin, published Thursday in Lisbon.

The Bank of Portugal also announced that in 2013 the Portuguese economy would stagnate (0.0 percent), whilst in the previous bulletin it had projected growth of 0.3 percent.

The central bank expects private spending to fall by 7.3 percent this year, almost twice the 3.9 percent drop seen last year, and in 2013 spending is expected to continue to fall (1.9 percent).

Projections for exports, which were practically the only driving force of the Portuguese economy, are also not so heartening, with the Bank of Portugal projecting growth of 2.7 percent this year and 4.4 percent in 2013. (macauhub)