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Portugal GDP to grow 1 percent in 2014

LISBON (Reuters) - Portugal's economy will grow 1 percent this year, allowing the country to meet its budget deficit goals despite the impact on public accounts from a rejection by the constitutional court of some austerity measures, Finance Minister Maria Luis Albuquerque said on Thursday.

The minister told journalists that due to a favourable economic outlook unemployment will end 2014 at 14.2 percent while gross debt will reach 130.9 percent of gross domestic product at year-end.

The government had previously seen growth of 1.2 percent this year.

The minister said that due to higher tax revenues and some spending cuts, the country will still meet its budget deficit goal of 4 percent of GDP this year despite the constitutional court's decisions.



(Reporting By Axel Bugge, Patricia Rua and Filipa Lima)