Bank of Portugal slashes GDP forecasts as political crisis generates uncertainty

The Bank of Portugal has taken an axe to its GDP forecasts, and is now predicting that Portugal will see GDP fall by two per cent in 2013. It cited the recent political crisis as introducing a high level of uncertainty into its economic forecasts.

Next year isn't looking much rosier. The Bank has reduced its forecasts for 2014 from 1.1 per cent to 0.3 per cent growth, after it last dropped its forecasts only four months ago.