Portugal: GDP contracts further in Q3 as external sector deteriorates
November 14, 2012
In the third quarter, GDP fell 0.8% over the previous quarter, according to a flash estimate released by Statistics Portugal on 14 November. The decline was smaller than the 1.1% contraction recorded in the second quarter but exceeded market expectations of a 0.6% fall. Moreover, the reading represents the eighth consecutive quarter of contraction for the Portuguese economy. Detailed and more complete data will be published on 7 December. In annual terms, GDP contracted 3.4%, which marked a deterioration over the 3.2% decline recorded in the second quarter and, in fact, the largest drop recorded since Q2 2009. According to Statistics Portugal, the third quarter reading reflected a less negative contribution of domestic demand to overall growth. On the other hand, the net contribution from the external sector deteriorated significantly, as import outpaced exports.