"The Portuguese economy will fall by 8.1 percent in 2020, reflecting a year-on-year fall of 9.4 percent in the first half and a recovery in the second half of the year, which translates into a year-on-year change of -6.8 percent", the paper reads.

The projection now presented revises the June forecast by 1.4 percentage points upwards, reflecting a smaller impact of the confinement in the Portuguese economy and a better-than-expected reaction by companies and households, the central bank said.