Portugal: Portuguese economy expands in Q2 amid export growth
August 14, 2013
In the second quarter, GDP rose a seasonally adjusted 1.1% over the previous quarter, according to a flash estimate released by Statistics Portugal on 14 August. The reading contrasted the 0.4% drop in the first quarter and exceeded market expectations of a mild 0.1% increase. This was the first recorded expansion following 10 consecutive quarters of contraction. Detailed and more complete data will be published on 6 September.
GDP contracted 2.0% in annual terms, which marks an improvement over the 4.0% decline recorded in the first quarter. According to Statistics Portugal, the second quarter reading reflects stronger exports and a less pronounced decrease in investment.
The Bank of Portugal expects the economy to contract 2.0% this year and to rebound to 0.3% growth in 2014. FocusEconomics Consensus Forecast panellists anticipate that GDP will contract 2.5% in 2013, which is unchanged from last month's projection. For 2014, the panel anticipates GDP to expand 0.3%.