PORTUGAL'S GDP FORECAST TO GROW FOUR PCT THIS YEAR

  Portugal's Gross Domestic Product (GDP)
  will grow around four pct this year, the same rate as in 1986,
  according to a Bank of Portugal forecast.
      Total investment this year, the country's second as a
  member of the European Community (EC), will rise nearly 10 pct,
  again the same rate as last year, the central bank study said.
      It added that Portugal's current account was forecast to
  show a surplus of 400 mln dlrs this year compared with 1.13
  billion in 1986 and 369 mln the previous year.
      Last year's high surplus was attributed to cheaper oil and
  raw materials, lower world interest rates and a weaker dollar.
      Imports by volume were forecast to grow 10 pct this year
  and exports four pct compared with increases of 16.5 pct and
  6.6 pct respectively in 1986, the bank said.
      The forecasts were calculated on the assumption that the
  non-expansionary monetary policy carried out by the current
  government would be maintained, particularly in budget spending
  and income and in wage policy.
      The bank added that the 1987 forecasts were also based on
  the assumption that the international economic situation and
  Portugal's world trade relations would remain more or less the
  same as in 1986.
      The central bank said the high rate of investment estimated
  for 1986 was due to government policies and to increasing
  optimism among firms whose financial situation had improved
  since 1985. This tendency was expected to continue this year,
  especially in the construction and public works sectors.
      Financial aid from the EC had also helped to boost
  investment last year, the bank said.
  

