LISBON, Feb 20: Portugal’s government expects the country’s recession to be a deeper 2.0 per cent this year than it earlier thought, Finance Minister Vitor Gaspar said on Wednesday.

“My preliminary assessment is pointing to a downward revision to the forecast for economic activity on the order of one percentage point,” said Gaspar. The government has previously forecast the Portuguese economy would contract by 1.0 per cent in 2013.

Gaspar said a revision of economic forecasts would be a central issue during the next review of the country’s finances by the EU, IMF and ECB that begins next week. He said the economic outlook had implications on the government’s ability to reduce the deficit, and that it was reasonable to hope that the European Commission would grant Portugal additional time.—AFP