Portugal GDP positive but economy only 'halfway' to matching EU growth

May 8, 2007 - Recent upwardly revised GDP forecasts for Portugal from the central bank and the European Union are positive, but the economy is only halfway to achieving its goal to match the EU average for GDP growth, Economy Minister Manuel Pinho said.

Speaking today at a conference hosted by Exame magazine, Pinho said: 'What we saw in Portugal is rare in public finances, we reduced the deficit and the GDP growth accelerated.'

Pinho said the fact that the Bank of Portugal economic climate indicator is at its highest level since July 2002 and that the PSI 20 index is at the highest point since September 2000 are good indicators of future growth.

'These results speak for themselves, but we are only halfway,' Pinho said.

Yesterday, the European Commission revised upwards Portugal's GDP growth estimates to 1.8 pct in 2007 from 1.5 pct earlier, and to 2.00 pct in 2008 from 1.7 pct earlier.

Last month, the Bank of Portugal raised its 2008 GDP growth forecast to 2.4 pct from 2.1 pct previously and projected an acceleration in growth to 3.0 pct in 2009.