Portugal's GDP contracts 2.4 pct in Q1

Source: Xinhua | 2020-05-16

Portugal's gross domestic product (GDP) fell 2.4 percent in the first quarter (Q1) of 2020 compared to the same three months of 2019, the National Statistics Institute (INE) reported on Friday.

The contraction reflects the impact of the COVID-19 pandemic, which prompted the country to introduce isolation measures in March.

According to the INE, the drop was the most marked in the sector of exports of goods and services, followed by a decline in private consumption and investment.

Compared to the fourth quarter of 2019, the country's GDP decreased by 3.9 percent, the INE said.

"Several measures have been taken in Portugal to contain the spread of COVID-19, and a state of emergency was decreed on March 18," including the temporary closure of certain economic activities and restrictions on the free movement of people, the INE said.

"Even before these measures, there had already been disruptions to the normal operation of some activities and to demand for their products and services -- namely in the restaurant and hotel industry -- affecting economic activity since the beginning of March," said the statement.

As of Friday, Portugal had recorded 1,190 deaths from COVID-19 and 28,583 cases of infection, the health authorities said.

According to the Directorate-General for Health, 673 patients are hospitalized, of whom 112 are in intensive care units, and 3,328 people have recovered.