Economy expected to 'return to growth' next year

Analysts at the Bank of Portugal have announced their expectations of the country's economy picking up in 2014, elplais.com reports.

Good news for anyone thinking of moving to the Mediterranean haven in the coming months; growth forecasts have been revised up to indicate economic recovery. The reasons behind this are predicted increases in exports and private consumption.

Portugal has - like the majority of European countries - been experiencing an economic recession, combined with a specific set of austerity measures.

However, in its recent winter economic bulletin, the Bank revealed its hopes for a 0.8 per cent growth in gross domestic product (GDP) - up from the 0.3 per cent which was predicted in the autumn bulletin. By 2015, the analysts believe GDP will rise by 1.3 per cent.

'External demand' has been hailed the linchpin of the recovery, with exports growing 5.9 per cent already this year and a steady 5.5 per cent rise forecast for 2014 and 2015.

In addition, sbs.com.au writes, the Bank believes that a renewed domestic demand for goods and services will contribute to the economy, where people start to find themselves in a position to buy items after having cut back for several years.

The Bank of Portugal report said: "The projections for the Portuguese economy incorporate a profile of a gradual recovery in domestic demand, limited by continuing fiscal consolidation and private-sector deleveraging."

Posted on Wednesday, December 11, 2013

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