European Commission REVISES UPWARDS GROWTH OF THE PORTUGUESE ECONOMY

Portugal will have this year, an increase of 0.5 percent of Gross Domestic Product, if the new European Commission forecasts are correct. The value is higher than that advanced in November - 0.3 percent - the same charge.

"The landscape is characterized by a modest recovery," considers the executive community in the spring forecast, published this Wednesday, which cites the TSF. In 2011, the document envisages an increase of 0.7 percent in the Portuguese economy.

The Portuguese government is more optimistic and expects, already this year, an increase of 0.7 percent. The Stability and Growth Pact, updated in late March, points to 0.9 percent in 2011 and to 1.3 percent in 2012.

However, the European Commission considers that the evolution of wealth Portuguese will be constrained mainly by the growth of foreign trade, a consequence of the stagnation of domestic demand. The same applies to consumption and added the "continuation of the contraction 'of the investment.

"As the GDP growth should be determined by the development of trade, the current scenario is very affected by the risks of export performance", explains European leaders, who also revised upwards the growth of the economy for the European Union - 1 percent in 2010 and 1.7 percent in 2011.