The Bank of Portugal (BdP) has raised its projections for growth of the Portuguese economy in 2013 and now expects a contraction of 1.6 percent compared to a previous estimate of 2 percent, according to the Autumn Economic Bulletin published in Lisbon Thursday.
The central bank explained its review based on a slower drop in consumer spending and upturn in exports.
In the Autumn Economic Bulletin, the Bank of Portugal now forecasts consumer spending will decrease by 2.2 percent in 2013, compared to a projected drop of 3.4 percent in the previous quarter and that investment will contract by 8.4 percent compared to an 8.9 percent projection previously.
Overall domestic demand is expected to fall, according to the Bank of Portugal, by 3.1 percent, which is a smaller downturn than the 4.4 percent expected in June.
The forecast for exports was also raised from 4.7 percent in July to 5.8 percent in the bulletin published Tuesday. (macauhub)