LISBON: Portugal's economy should grow 0.8 percent this year, slightly below the government's forecast of 1 percent growth, and expand at a faster pace in the following two years, the Organisation for Economic Cooperation and Development said on Monday.

In its economic survey of Portugal, which exited an international bailout in May, the OECD expects the economy to expand 1.3 percent in 2015 and 1.5 percent in 2016. This year will be the first full year of growth after a three-year recession.

The budget deficit this year should stay unchanged from 2013 at 4.9 percent of GDP, practically in line with the government's most recent forecast of 4.8 percent when including one-off costs. The deficit should then fall to 2.9 percent in 2015 and 2.3 percent in 2016, the OECD said.

Copyright Reuters, 2014