The Organization for Economic Cooperation and Development (OECD) has lowered its growth forecast for the Portuguese economy in 2016 to 1.2 percent, and its forecast for the budget deficit upwards to 2.9 percent, according to a report published in Paris Wednesday.

In the report released in November 2015, the OECD prjected growth for Portugal this year of 1.6 percent and 2.8 percent in relation to the budget deficit.

The new forecast of economic growth from the OECD in 2016 of 1.2 percent of GDP compares to a rate of 1.8 percent provided by the government and is even more pessimistic than the 1.4 percent forecast by the International Monetary Fund (IMF) .

With regard to the budget deficit, the OECD joins the International Monetary Fund (IMF), which also expects a deficit of 2.9 percent, and the European Commission, which estimates a deficit of 2.7 percent, well away from the government forecast of 2.2 percent of GDP.

The OECD has reviewed its estimate for public debt from the perspective of the Maastricht Treaty upwards and now expects it to total 128.3 percent of GDP this year, remaining at that level in 2017, against the forecast of 127.9 percent issued in November.

In its Stability Programme for 2016-2020 stipulates a reduction of public debt to 124.8 percent of GDP this year and 122.3 percent in 2017. (macauhub/PT)