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Portugal's draft 2021 budget ups investment to eke out growth

LISBON, Oct 12 (Reuters) - Portugal’s Socialist government unveiled its draft 2021 budget on Monday, which bets on public investment to relaunch growth and gives more subsidies to the poorest, while envisaging a lower deficit of 4.3% of GDP after this year’s estimated 7.3%.

The draft budget sees gross domestic product growing 5.4% in 2021, after a steep slump of 8.5% projected for 2020 - the worst recession in almost a century - caused by the coronavirus pandemic.

In 2019, the economy grew 2.2%, helping Portugal to reach its first budget surplus in 45 years, equivalent to 0.1% of GDP. (Reporting by Sergio Goncalves; Writing by Andrei Khalip; Editing by Leslie Adler)