“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”.