Portugal sees silver lining in Spain's Catalan clouds

By Axel Bugge and Sergio Goncalves

LISBON (Reuters) - Portugal has taken a swipe at its bigger neighbour Spain, saying it takes no pleasure from the Catalan independence crisis but hopes investment and tourists will be persuaded to cross the border in search of "political stability".

Portugal and Spain have a centuries-old rivalry, dating back to the time when they divided the world between them as colonial adventurers. Now they compete for business.

"There is a point which is worth mentioning, which is our political stability. Unlike others, even next door," Finance Minister Mario Centeno told Reuters in an interview late on Tuesday.

He regretted the Spanish turmoil, saying he had "friends both in Catalonia and in Madrid", but continued:

"This is a worry, also for us, but it differentiates Portugal from political turbulence and will surely help to attract more investment, more tourism and more people."

Since 2015, Portugal has had a minority Socialist government, backed by the Communists and Left Bloc in parliament, which has overseen a robust economic expansion, helped by investment and tourism.

This year the country is set to record its highest growth in at least ten years, helped by foreign investment and exports.

Spain has also staged a strong economic recovery, but Catalonia's push for independence has plunged it into its worst political crisis since an attempted military coup in 1981.

Hundreds of companies have moved their headquarters out of the wealthy region, raising fears of a stampede if it breaks away. It has also prompted Spain to downgrade its economic growth forecasts and rattled the euro.

The crisis could worsen on Thursday, the deadline set by Spanish Prime Minister Mariano Rajoy for the Catalan government to renounce independence. If it does not -- and it has shown sign of doing so -- he has said he will take direct central control of the region.

Spain this week cut its 2018 economic growth forecast to 2.3 percent from 2.6 percent

The turmoil in Catalonia, which has an economy about the size of Portugal, has also weighed on Spanish shares and bonds.

"There are negative risks, like to (Spain's) GDP, but I can't hide that there are positive risks; obviously companies look for more stable situations, and if you mention companies you can also say that tourism could create some gains (for Portugal)," Centeno said.

"Obviously these would be collateral effects of processes that we would prefer did not exist," he said, adding that he hoped Spain would resolve the stand-off.

(Reporting By Axel Bugge; editing by Giles Elgood)