Portugal to remain in recession until 2012 - finance minister

LISBON (Reuters) - Portugal faces recession until 2012 as it introduces austerity to meet the terms of a 78-billion-euro bailout, Finance Minister Vitor Gaspar said on Thursday.

"Since the last quarter of 2010 we have been in recession and the indications are that we will remain in recession until 2012," Gaspar said, speaking in parliament for the first time since his centre-right government took office this month.

The previous government had forecast a contraction of gross domestic product of 2 percent both this year and next.

(Reporting by Sergio; Writing by Axel Bugge)