Early results from Portugal's parliamentary elections, held on Sunday, predict that the governing Socialist Party of Prime Minister José Socrates will lose its absolute majority in parliament.

With an estimated 38 percent of the vote, it is, however, expected to remain the largest party. The main opposition party, the centre-right PSD led by Manuela Ferreira Leita, looks set to gain 32 percent of the vote.
 

The campaign has been dominated by the economy, which has badly suffered as a result of the global recession. Western Europe's poorest country, Portugal is coping with an unemployment rate of nine percent and the economy is expected to shrink next year by four percent.