Tag Archives: 'Bank of Portugal'
The summer economic bulletin estimated that gross domestic product (GDP) would shrink by 2% this year, compared to an original growth forecast of -2.3%, and 0.3% next year, while the earlier forecast for next year had been 1.1%.
The Portuguese central bank revised down its forecasts for the country’s economy in 2013 and foresees in its spring report a contraction of 2.3%, after the earlier estimate of a 1.9% drop.
The decision to tax bank deposits in Cyprus in return for a bailout has sent euro and bond markets falling, sparking fears among Portuguese politicians. Portuguese President Cavaco Silva said the move was “very dangerous.”
Portugal’s economy in 2012 suffered the worst recession since 1975, according to data released today by the National Institute of Statistics.
Prime Minister Passos Coelho said Portugal had its financing needs “covered” and that there was “no hurry” to go to the markets.
The Portuguese central bank sees the country’s GDP contracting 1.9% in 2013, and growing 1.3% next year.
Carlos Costa said the banking union was good news for the European banking system, for companies and for Europe.
The Bank of Portugal has warned that reductions on the real estate market may imply some risk for banks.
In its autumn report, the central bank is more pessimistic than the government and the EC-ECB-IMF troika of international lenders which predict a 1% contraction next year. The main driver for a steeper contraction will be internal demand. However, Bank of Portugal reinforces the need to proceed with the austerity measures.
The percentage of bank loans not being repaid properly fell to 15.3% in September, the lowest number since March, the Bank of Portugal said Tuesday.