LISBON Jan 15 The Bank of Portugal lowered its
economic outlook for the country on Tuesday, forecasting a slump
in 2013 output of 1.9 percent as lower global growth dampens
export demand and domestic consumption slides.
The forecast in the bank's winter economic bulletin was
lowered from the bank's previous outlook of a 1.6 percent drop
in gross domestic product this year and compares with the
government's forecast of a 1 percent slump in 2013.
The bank said GDP should rebound to post growth of 1.3
percent next year but that depends on whether further austerity
measures are launched under Portugal's bailout form the European
Union and IMF.
This year will be the third year of recession as the country
wallows in its worst downturn since the 1970s.