Summary Box: Portugal econ shrank 1.6 pct in 2011

The Associated Press
March 9, 2012

PAYING THE PRICE: Portugal's economy shrank 1.6 percent last year, largely because of harsh austerity measures adopted in return for a $103 billion bailout took their toll.

AXIS OF DEBT: Portugal became the third country in the eurozone, after Greece and Ireland, to require a financial rescue to avoid bankruptcy. Debt mushroomed after a decade of average growth of below 1 percent.

LOOKING AHEAD: While new monetary restrictions are intended to push growth levels higher eventually, the government is predicting a contraction of 3.3 percent this year. That has raise fears Portugal will need more financial aid from its European partners and the International Monetary Fund.