The Bank of Portugal has revised down its projections for the domestic economy to show a steeper contraction this year and a weaker rebound next year.
The central bank now sees Portugal's GDP falling 2.3% this year, revised from December's -1.9%, after a 3.2% drop last year. GDP growth in 2014 is predicted to average 1.1%, revised down from +1.3%. The revisions reflect a smaller boost from foreign trade this year and a weaker recovery in domestic demand next year.
This year, "exports are expected to register a slowdown, while maintaining positive growth," the central bank said in its Spring Economic Bulletin.