My recent journey and what I’ve seen in Portugal are confirmed by Bloomberg analysis. Austerity will impact growth and the slump may deepen as the government starts executing cuts and tax increases. In fact, Portugal may have followed Greece into recession even before implementing austerity measures demanded for its European Union bailout that are set to further choke the economic growth needed to tame the country’s debt. Data to be released tomorrow may show the economy shrank 0.3 percent in the first quarter, economists surveyed by Bloomberg forecast, matching the contraction of the previous three months. Read more on Bloomberg : Portuguese Austerity May Mean Greek-Like Recession.
