Portugal's government cuts 2021 growth outlook to 4% due to lockdown

Portugal's government slashed its 2021 economic growth forecast to 4% from 5.4%, the finance minister said on Thursday, after a severe worsening of the coronavirus pandemic at the start of the year forced a nationwide lockdown lasting over two months. Finance Minister Joao Leao told a news conference, however, the government expected "a strong recovery in the second half of the year", projecting also that public debt should fall below 120% of gross domestic product in 2024 from a record 133.7% in 2020.

The new estimates were laid out in the so-called Stability Programme, assessing the impact of pandemic-induced restrictions on growth, which must be presented to the European Commission as part of EU members' economic plans.