Portugal's economy given improved outlook

Portugal's economy will do better in 2010 than previously expected, the European Commission has predicted.

The body revised its forecasts for the country, stating that rather than suffering a 3.7 per cent contraction this year, the fall will only be 2.9 per cent.

It also said the country will see its economy grow by 0.3 per cent next year, instead of declining by 0.8 per cent.

The new projection comes after Portugal was revealed to have come out of recession in the third quarter.

Such a situation could help bolster the property market as the country's economic conditions improve.

One area that may do particularly well is the Alentejo region, the Daily Mail suggested last week.

It predicted that there will be an influx of tourists and property bargain seekers following the opening of an international airport in the town of Beja before the end of this year, with at least one budget airline in negotiations about starting a service there from the UK.

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