Portugal sees economy shrinking 2.3% in 2011, 1.7% in 2012

LISBON—Bailed-out Portugal will see its economy shrink 2.3 percent this year and 1.7 percent in 2012, with a recovery only coming in 2013, Finance Minister Vitor Gaspar said Thursday.

The International Monetary Fund and the European Union, which bailed out debt-stricken Portugal earlier this year, based their help on forecasts for a contraction of 2.2 percent in 2011 and 1.8 percent in 2012.

“The economic recovery will only occur in 2013,” Gaspar told a press conference.