Portugal: Recession deepens in Q4
February 14, 2013
In the fourth quarter, GDP fell 1.8% over the previous quarter, according to a flash estimate released by Statistics Portugal on 14 February. The decline doubled the 0.9% contraction recorded in the third quarter and exceeded market expectations of a 1.0% fall. Moreover, the reading represents the ninth consecutive quarter of contraction for the Portuguese economy. Detailed and more complete data will be published on 11 March.
In annual terms, GDP contracted 3.8%, which marked a deterioration over the 3.5% decline recorded in the third quarter and, in fact, the largest drop recorded since Q1 2009. According to Statistics Portugal, the fourth quarter reading reflected a less negative contribution of domestic demand to overall growth, which was not enough to offset a significant deterioration in the external sector. Based on these figures, GDP contracted 3.2% in 2012, which marks a deterioration compared to the 1.6% drop in 2011.