Brussels, 14/11/2012 (Agence Europe) - On Tuesday 13 November, the Central Bank of Portugal indicated that the recession would hit harder in 2013, with the country's economy expected to shrink by 1.6% next year, AFP reports. These forecasts are more pessimistic than those of the government and the international funders (the Commission, the European Central Bank and the International Monetary Fund), which anticipate a recession of 3% in 2012, but just 1% in 2013. The institution also predicts a 3% drop in GDP for 2012. In its previous forecasts, Portugal's Central Bank reckoned on stagnation in 2013, but justified its change of mind by the fact that internal demand will only be partly compensated for by positive developments in net external demand. The Governor of the Central Bank of Portugal, Carlos Costa, also said on 14 November, against the backdrop of a general strike in the country as part of European Action Day, that the country needed to cut its public expenditure quickly and bring State expenditure into line with tax revenue. The priority has to be a swift budgetary adjustment, the Governor told a conference, calling on political actors to redefine the role of the State and its public services. (SP/transl.fl)