Arab Today, arab today portugal forecasts economy to contract 28 in 2012
Last Updated : GMT 06:52:13
Arab Today, arab today
Arab Today, arab today

Portugal forecasts economy to contract 2.8% in 2012

Arab Today, arab today

Arab Today, arab today Portugal forecasts economy to contract 2.8% in 2012

London - Arabstoday

Portugal's economy is next year expected to shrink further than was previously forecast, the government said Monday as it submitted its tough 2012 budget, while unions responded with a strike call. Finance Minister Vitor Gaspar told a press conference that Portugal was "at the heart of the crisis" affecting the eurozone and that the floundering world economy "will lead to a contraction of gross domestic product of 2.8 percent, following 1.9 percent this year," in Portugal. The government had previously envisaged the economy would shrink by 2.3 percent in 2012 and 1.8 percent this year. The Bank of Portugal had put the estimates at 2.2 percent and 1.9 percent, respectively. The draft budget, previewed by Prime Minister Pedro Passos Coelho and his centre-right government on Thursday, contains toughened austerity measures the government says are needed to meet conditions set by debt-wracked Portugal's international creditors. Gaspar said a 3.4 billion-euro hole in the books since the beginning of the year was behind the stricter programme than that recommended by the European Union and the International Monetary Fund last May. "It's clear that the starting point of the (2012) budget is a lot more unfavourable than that laid out in the financial assistance programme," he said at the conference. Earlier Monday union leaders called for a general strike against the deep spending cuts proposed. The head of the main UGT union, Joao Proenca, who called for the strike alongside his counterpart Manuel Carvalho da Silva of the CGTP union, slammed the budget that lawmakers will vote on by the end of the month. "These measures will not get the country out of the crisis, but will worsen poverty, unemployment and inequality," he said. The date and nature of the strike "will be decided soon", Carvalho da Silva said. The prime minister insisted the biting cuts are needed to tackle what he described as a "national emergency" in a televised address Thursday. With an absolute majority in the assembly, Passos Coehlo's coalition, in power since June, is assured of its adoption. The proposal includes the temporary suspension of 13th and 14th month salary payments for civil servants and pensioners who earn more than 1,000 euros a month. In the private sector, employees will be requested to work half an hour more per day. VAT is set to be hiked while the health and education budgets will be slashed. Passos Coelho said the "measures are temporary and will remain in place only during the financial aid programme", in his Thursday address. Portugal in May received a 78-billion-euro bailout from the European Union and International Monetary Fund, conditioned on a tough austerity programme to be executed over three years. The country needs to reduce its public deficit from 9.8 percent of gross domestic product in 2010 to 5.9 percent by the end of this year. The cutbacks envisioned in the draft budget are "inevitable", said the Diario Economico newspaper Monday, while questioning if "these sacrifices will solve (Portugal's) problems". Tens of thousands of people flooded the streets of Lisbon on Saturday to protest against Passos Coelho's budget and the demands imposed by the EU and IMF amid crippling unemployment which stands at 12.3 percent.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today portugal forecasts economy to contract 28 in 2012 Arab Today, arab today portugal forecasts economy to contract 28 in 2012

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday