“Growth rates are directly related to energy prices and
commodity prices in general and so [drought] is one of the negative risks we
have in specific countries,” said European Economy Commissioner Paolo
Gentiloni.
Responding to a question from Lusa after the presentation of
the autumn macroeconomic forecasts in Brussels, the official added: “We have
experience, both in Portugal and in Spain, of the impact on hydroelectric
energy and the energy mix”.
In the chapter on Portugal, the European Commission notes
that “risks to growth prospects remain significantly on the negative side in
light of the uncertain global environment and country-specific risks related to
the severe drought in the Iberian Peninsula, which could have prolonged
repercussions in the domestic food supply”.
According to Brussels, “after a strong recovery, the
Portuguese economy is expected to slow down substantially in the short term,
limited by weak external demand and high energy prices”.