LISBON, Jan 27 (Reuters) - Portugal's government is likely to reduce its 5.4% growth forecast for this year due to a worsening coronavirus pandemic that forced it to impose a new lockdown earlier this month, the Finance Ministry said on Wednesday.
The growth projected earlier by the government for the tourism-dependent economy was above the central bank's forecast of a 3.9% recovery after last year's estimated slump of 8.5%, the worst recession in a century.
"The second wave of the pandemic, more intense than expected, and restrictive lockdown measures, with greater support for household and business income, should lead to a downward revision of the macroeconomic scenario," the ministry said in a statement.
In early January, before the country's second lockdown, Finance Minister Joao Leao told Reuters the economy was doing "slightly better than expected", citing resilient income tax revenues and employment.
With a total of 668,951 infections and 11,305 deaths from COVID-19, including a record 293 on Wednesday, Portugal is struggling to handle a record post-Christmas surge, with hospitals running out of intensive care beds and medical personnel.
(Reporting by Sergio Goncalves; editing by Andrei Khalip)
