Portugal: Recession eases in Q1
May 15, 2013
In the first quarter, GDP fell a seasonally adjusted 0.3% over the previous quarter, according to a flash estimate released by Statistics Portugal on 15 May. The decline marked a strong improvement over the 1.8% drop recorded in the fourth quarter and matched market expectations. That said, the reading represents the 10th consecutive quarter of contraction for the Portuguese economy. Detailed and more complete data will be published on 5 June.
In annual terms, GDP contracted 3.9%, which marks a slight deterioration over the 3.8% decline recorded in the fourth quarter and represents, in fact, the largest drop recorded in four years. According to Statistics Portugal, the first quarter reading reflects a more negative contribution of domestic demand to overall growth, particularly of investment, which was partially offset by an improvement of the external sector due to an intense reduction of imports.