LISBON, Jan 30 (Reuters) - Portugal's economic decline this year will be smaller than last year, with a turnaround expected to begin later in 2013 so the bailed out country can return to growth next year, Prime Minister Pedro Passos Coelho said on Wednesday.

'All forecasts point in one direction, that in 2014 the Portuguese economy will recover in terms of growth and that throughout 2013 a turnaround in the recessive trend will occur,' he told reporters.

Passos Coelho said the country had its financing needs for 2013 covered by the bailout and following recent bond operations, and it was moving closer to exiting the EU/IMF bailout programme as planned in mid-2014.

(Reporting By Andrei Khalip and Daniel Alvarenga, editing by Axel Bugge) Keywords: PORTUGAL ECONOMY/

(andrei.khalip@thomsonreuters.com)(351)(213-509-209)(Reuters Messaging: andrei.khalip.thomsonreuters.com@reuters.net)

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