In its summer economic outlook bulletin, Portugal’s central bank announced Tuesday that it expects the country to shed 222,000 jobs or 4,8% of the workforce in 2013. Its 2014 forecast was slightly less severe with a projected loss of 57,360 jobs lost or 1,3% of the total workforce.
The country’s unemployment rate is at a record high of 17,7% according to the Institute of National Statistics (INE). It is expected to peak at 18,5% in 2014 according to IMF estimates.
The workforce is expected to shrink from 4,41million to 4,36million in 2014 according to the Bank of Portugal. It also announced that it expects the recession this year to ease slightly to -2,0%, compared to -2,3% in 2012.