It hasn’t taken long to realise that the battering Storm Kristin wreaked on the centre of Portugal will almost certainly have a negative effect on the country’s economy.
As reports have explained, central regions now looking like war zones are responsible for a lot of industry (primarily glass/ ceramics and cement) – and a lot of Portuguese exports.
Economic growth of 1.9% last year ‘shone’ in comparison to European neighbours – and forecasts for this year are/ were even better: growth of between 2.2% and 2.3%. But these forecasts were made before Storm Kristin ripped up infrastructure, factories and businesses. Diário de Notícias has predicted that just this one ‘weather-bomb’ could cut 2026 growth predictions by half, and still have an effect on subsequent years.
Estimates for rebuilding are still a long way off – but all involved appreciate that damages are colossal.
The government has already put aside a package of support measures totalling €2.5 billion: this means that GDP will be slashed (instead of growing by €5.7 billion through 2026, it would necessarily fall to a growth of €3.2 billion) – taking the overall forecast down to growth of 1.3% (not the 2.2-2.3% initially projected).
But things could get even worse, the paper warns. The prime minister has already admitted that damages “could be a great deal higher” than the government initially expected – and all the while, businesses in the centre are ‘losing momentum’: if not destroyed, they are still struggling, along with thousands of homes, with a lack of electricity/ water/ communications.
The Association of Glass Packaging Industries has already told Lusa that it predicts damages in ‘millions of euros’, just for the glass side of the central region’s output.
When it comes to cement/ concrete manufacturing, Secil – the main producer – has had to close temporarily in Leiria and in Alcobaça.
Source material: ZAP quoting Diário de Notícias
