Portugal economy to shrink 1.4% in 2011: central bank

The Portuguese economy will shrink 1.4 percent this year, the Bank of Portugal said Tuesday, downgrading its previous estimate for a contraction of 1.3 percent.

The central bank said the slowdown in the economy could even continue into 2012 because of the austerity measures the government has had to take in an effort to stabilise the public finances.

For 2012 as a whole, however, the economy should manage growth of 0.3 percent, it said in its spring economic report.