In the third quarter, GDP fell a seasonally adjusted 0.6% over the previous quarter, according to the National Statistics Office (INE, Instituto Nacional de Estadistica). The reading was below both the 0.4% drop released in the 14 November flash estimate and the 0.2% contraction seen in the second quarter. On an annual basis, the economy contracted 1.7% over the same quarter the year before, unchanged from the flash estimate. The contraction in the third quarter was mainly driven by a marked deterioration in the external sector, while domestic demand, albeit remaining subdued, improved marginally (Q2: -1.1% quarter-on-quarter; Q3: -0.6% qoq). Final consumption slipped (Q2: +0.3% qoq; Q3: -0.4% qoq) as the meagre gain of 0.1% in private consumption (Q2: -0.4% qoq) was totally offset by an outright contraction in government consumption (Q2: +2.4% qoq; Q3: -1.8% qoq). Public spending contracted sharply due to government efforts to meet the fiscal budget targets set under the IMF/EU bailout. Meanwhile, fixed investment declined at a slower pace in the third quarter (Q2: -6.0% qoq; Q3: -2.8% qoq). The external sector, which has been the main source of economic growth in past quarters, slowed notably as demand for exports among European trading partners dwindled. Shipments of goods and services moderated compared to the previous quarter, expanding 2.7% (Q2: +4.1% qoq), while imports accelerated to 2.4% (Q2: +1.1% qoq). As a result, the external sector's net contribution to overall economic growth was nil in the third quarter, down from a contribution of plus 0.9 percentage points in the second .
GDP shrinks in third quarter on spending cuts
December 9, 2011
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Portugal Economic News
September 30, 2016
Portugal’s industrial production edged up in August after July’s drop.
September 29, 2016
The survey of consumer sentiment produced by the National Statistical Institute showed that the consumer confidence index inched up from minus 12.7 points in August to minus 11.3 points in September.
August 31, 2016
Portugal’s GDP increased a seasonally adjusted 0.3% in Q2 over the previous quarter, according to revised data published by the National Statistics Institute on 31 August.
August 30, 2016
Portugal’s industrial production edged down again in July after June’s rebound.
August 30, 2016
The survey of consumer sentiment produced by the National Statistical Institute showed that the consumer confidence index inched up from minus 13.1 points in July to minus 12.7 points in August.