–Unavoidable Adjustments Will Lay Foundation For Sustainable Growth
LISBON (MNI) – The economic outlook for Portugal is particularly
bleak, the country’s central bank said Thursday, noting that the
financial bailout package negotiated with the IMF, the EU and the ECB
foresees a new recession in 2011 of a high magnitude that will persist
in 2012.
This prolonged recession will be accompanied by an unprecedented
contraction of real disposable household incomes and new increases in
unemployment, the central bank said in its annual report.
Still, the adjustment program is “desirable and unavoidable” and
should lay the foundation for sustainable economic growth in the medium
term, it argued.
The temporary pick-up in economic activity last year was partly the
result of unsustainable elements in domestic demand, it noted.
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