Portugal: Portuguese economy expands for second consecutive quarter
November 14, 2013
In the third quarter, GDP rose a seasonally-adjusted 0.2% over the previous quarter according to a flash estimate released by Statistics Portugal on 14 November. The reading followed the strong 1.1% rise tallied in the second quarter but fell short of the 0.3% expansion that markets had expected. The Q3 print represented the second consecutive expansion in the country's output. Detailed and more complete data will be published on 9 December.
GDP contracted 1.0% in annual terms, which marked an improvement over the 2.0% decline recorded in the second quarter. According to Statistics Portugal, the third quarter reading reflects a smaller decline in private consumption as well as a deterioration in the external sector due to rising imports.
The Bank of Portugal expects the economy to expand 0.3% in 2014 and estimates that the economy will contract 1.6% in 2013. The government is more upbeat than the Central Bank regarding 2014 and expects the economy to grow 0.8%, after contracting 1.8% in 2013. FocusEconomics Consensus Forecast panelists anticipate that GDP will contract 1.9% in 2013, which is up 0.1 percentage points from last month's projection. For 2014, the panel expects GDP to expand 0.4%, which is unchanged over the previous month's estimate.