Economics
Portugal Sees Economy Shrinking 6.9% This Year Due to Outbreak
- Government sets out plan for construction projects, incentives
- Prime Minister Costa presented measures for next six months
A pedestrian walks through a deserted Praca do Comercio in Lisbon, Portugal on May 14.
Photographer: Jose Sarmento Matos/BloombergThis article is for subscribers only.
Portuguese Prime Minister Antonio Costa forecast his country’s economy will shrink 6.9% this year after the coronavirus outbreak forced authorities to impose confinement measures and shut some businesses.
The government plans to help companies recover with more financing and incentives, Costa said at a press conference in Lisbon on Thursday. It will also increase some benefit payments, with unemployment expected to rise to 9.6% by the end of the year. The European Commission forecasts the country’s economy will shrink 6.8% this year.