Portugal's economy is expected to contract less than previously estimated in 2012, helped by strong growth in exports, the Bank of Portugal said Tuesday in its summer economic bulletin.
According to the central bank's revised forecast, the gross domestic product (GDP) would fall 3 percent in 2012, slower than the 3.4 percent contraction estimated earlier. The revised rate will, however, be faster than last year's 1.6 percent.
Exports are now seen growing at faster rate of 3.5 percent in 2012 than 2.7 percent predicted in the initial estimates. The growth rate for next year has been revised up to 5.2 from 4.4 percent.
Meanwhile, confirming its earlier forecast, the bank said that in 2013 the overall economy will recover and reach stagnation levels.
Inflation, measured under the EU methodology, will ease to 2.6 percent by the end of this year from 3.6 percent recorded last year. It is markedly slower than 3.2 percent estimated earlier, the report said.
Inflation will ease further and hit 1 percent next year, which is a tad lower than the earlier forecast of 0.9 percent.
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