More Austerity for Europe

Following similar measures in Greece and Iceland, Portugal’s leadership has approved its largest spending cuts since the 1970s. Economists have comented that it will likely “hurt growth” of the country’s economy, which hasn’t been a growth powerhouse to begin with:

The spending cuts, the biggest since the 1970s, may hurt Portugal’s economic growth, which has averaged less than 1 percent a year in the past decade. That trails the 1.3 percent pace for the whole euro region.

This will almost certainly lead the country into a lengthy recession until the reforms “bear fruit,” according to economists.

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