The Bank of Portugal cut its growth forecasts on Wednesday. The economy in Portugal is expected to expand 1.6% in 2015, down from the previous estimate of 1.7%, 1.7% in 2016, down from the previous estimate of 1.9%, and 1.8% in 2017, down from the previous estimate of 2.0%.

The central bank noted that the weak global economy global trade flows are the main risk factors.

There is an uncertainty on new budget as the new government didn't publish its budget plan.

Inflation is expected to 0.6% this year and 1.1% next year.