LISBON, Oct 8 Reuters The Bank of Portugal on Tuesday lowered the economic growth outlook for this year to 1.6 from 2.0 it projected in June, pointing to an anaemic third quarter with a slowdown in exports and private consumption.

It expects the economy, which grew 2.5 in 2023, to expand by 2.1 next year 2025 and 2.2 in 2026, slightly below its previous estimates.

In its quarterly economic bulletin, the central bank said that recent activity developments have been weaker than expected, with an acceleration projected towards the end of the year after growth likely remaining weak in the third quarter.

The government still expects the economy to grow by around 2 this year.

It sees investment growing by just 0.8 in 2024, after 3.6 in 2023, adding that the gradual transition to lower interest rates and inflows of European funds will support greater investment growth in the future.

Exports growth, predicted at 3.8 this year, should still outpace last year39;s 3.5, but the new forecast is well below the 4.2 expected in June. Private consumption, which represents around twothirds of GDP, is seen growing 2.5 this year after 2.0 in 2023.

Reporting by Sergio Goncalves; editing by Andrei Khalip

Source Reuters