Bank of Portugal Lowers 2014 Growth Forecast on Budget Cuts

Portugal’s economy will grow less than previously forecast in 2014 when the government plans to implement new spending cuts, the country’s central bank said.

Gross domestic product will expand 0.3 percent in 2014 after declining 2 percent in 2013, the Lisbon-based Bank of Portugal said today in its summer economic bulletin. In March, the central bank forecast a contraction of 2.3 percent for 2013 and growth of 1.1 percent in 2014.