Portugal still faces 'negative risks' despite economic recovery

Portugal still faces "negative risks" despite the economy progressively becoming more balanced and driven by domestic demand, the European Commission (EC) said in its spring forecast on Monday. The EC warns that though financing conditions at present are "relatively favorable", investors feelings "have been volatile in the past", and Portugal's exports are still "highly dependent" on Europe's economic environment. The European Commission, on a brighter note, said the country's budget risks were "more balanced" and that Portugal reaching a GDP target of 4 percent this year was "doable." Portugal's revenues could also be increased, the EC added, thanks to a stronger growth. Portugal's Gross Domestic Product is expected to grow 1.2 percent in 2014, after a 1.4 percent decline last year. The government had previously forecast a 0.8-percent rise of GDP for this year.