The Bank of Portugal lowered its economic outlook for the country on Tuesday, forecasting a slump in 2013 output of 1.9 percent as lower global growth dampens export demand and domestic consumption slides.
The forecast in the bank's winter economic bulletin was lowered from the bank's previous outlook of a 1.6 percent drop in gross domestic product this year and compares with the government's forecast of a 1 percent slump in 2013.
The bank said GDP should rebound to post growth of 1.3 percent next year but that depends on whether further austerity measures are launched under Portugal's bailout form the European Union and IMF.
This year will be the third year of recession as the country wallows in its worst downturn since the 1970s. - Reuters