The latest report from Bank of Portugal, released July 16, predicts a contraction of 1.7 per cent of GDP in 2013-2014, compared to previous projections of a 1.2 per cent reduction.

The central bank’s 2013 spring report predicted GDP growth of 1.1 per cent in 2014, but this has also been revised down to 0.3 per cent. Such a low level relies on the strong performance of several key factors, such as exports.

According to the i, "in just four years, austerity measures that brought impoverishment and a fall in imports in Portugal have caused a fall of 14.2 per cent in household consumption."