Portuguese economy begins to grow in 2013: IMF

Portugal faces considerable economic and fiscal risks but the nation will see the start of economic recovery in 2013 onwards, according to a document released by the International Monetary Fund(IMF)on Wednesday.


Output was forecast to contract around 2 percent in 2011 and 2012 due to needed fiscal consolidation, adjustments in the banking system as well as general market concerns for euro area periphery countries, noted the Letter of Intent of the Portuguese government put forward to the Washington-based IMF last month.


The document dated May 17 outlined policies that Portugal intends to implement in the context of its request for financial support from the IMF.


The IMF announced on May 20 that its Executive Board approved a three-year arrangement for Portugal in the amount of 23.742 billion IMF special drawing right (SDR), equivalent to about 26 billion euros, in support of Portugal's economic recovery.


"As markets regain confidence in the economy and structural reforms begin to deliver, activity is expected to start recovering in 2013 onwards," said the document.


To cope with these challenges, the Portuguese government said it had embarked on a balanced and focused reform to correct external and internal imbalances and foster potential growth and employment.


The debt-stricken nation laid out "ambitious but realistic" goals in this document, targeting a deficit of 5.9 percent of gross domestic product (GDP) in 2011, 4.5 percent of GDP in 2012 and 3 percent of GDP in 2013, in a bid to stabilize public sector debt by 2013.
(Source:http://news.xinhuanet.com)