Portugal increase growth forecast

The Bank of Portugal has raised its forecast for economic growth this year owing to a higher-than-expected increase in internal demand, central bank Governor Vitor Constancio said.

Gross domestic product (GDP) should rise between 0.75 and 1.75 percent in 2004, after having fallen 1.2% last year, he told parliament's Economy and Finance Committee as part of the bank's twice-yearly outlook for the economy.

"Internal demand is rising more than forecast, in consumption as well as in investment, bu