Portugal: Economy continues to deteriorate in third quarter
November 14, 2011
In the third quarter, GDP contracted a seasonally adjusted 0.4% over the previous quarter, according to a flash estimate released by the Central Statistics Office (INE) on 14 November. The reading represented a deterioration compared to the revised 0.1% contraction recorded in the second quarter but was better than market expectations of a 0.7% decline. Compared to the same period last year, the economy contracted 1.7%, which was down from the previous quarter's 1.0% decline. A revised and complete set of data will be released on 9 December. According to the Statistics Office, the deterioration was mainly driven by a deceleration in exports of goods and services and by a stronger decrease in investment. Private consumption continued to decline rapidly in the third quarter. The Central Bank projects the economy to contract 1.9% this year and 2.2% next year.