Portuguese GDP fell by 5,7% compared to the same period last year, according to data released today by the National Statistics Institute (INE). In the previous quarter, GDP had fallen by 16,4% compared to the same period in 2019.
INE is due to this evolution “largely due to the behavior of domestic demand, which made a significantly less negative contribution than in the previous quarter (from -11,8 percentage points (pp) in the second quarter to -2 pp), mainly reflecting the expressive recovery of private consumption and, to a lesser extent, of investment and public consumption ”.
The pace of exports in the third quarter “was less negative than that recorded in the previous quarter (from -4,6 pp to -1,6 pp), with a more significant recovery in Exports of Goods and Services (from a rate of -39,4% to -15,2%) than that observed in Imports of Goods and Services (from -29,2% to -11,4%), mainly due to the evolution of goods exports ”.
INE points out that this is a preliminary estimate for the third quarter that reflects the “effects of the progressive reopening of economic activity, which followed the application of measures to contain the spread of COVID-19 with a strong economic impact in the first two months of the second quarter".
Compared to the previous quarter, GDP rose 13,3% after a 13,9% drop in the second quarter. “This result is also explained, above all, by the behavior of domestic demand, which registered a positive contribution of 10,7 pp to the chain variation of GDP, almost symmetrical to that observed in the 2nd quarter (-10,9 pp). The contribution of net external demand also turned positive (2,6 pp), after having been very negative (-3,0 pp) in the previous quarter, with a sharp growth in Exports of Goods and Services ”, highlights the INE.