Portuguese GDP falls 16.3 pct in Q2

Source: Xinhua | 2020-08-15

Portugal's National Statistics Institute (INE) said on Friday that the country's gross domestic product (GDP) fell 16.3 percent in the second quarter (Q2) year-on-year, reflecting the "significant contraction of the private consumption and investment."

In relation to the first quarter, the fall was 13.9 percent, according to a statement from the statistics agency.

"Reflecting the economic impact of the pandemic, the gross domestic product registered a strong contraction in real terms in the 2nd quarter of 2020," the INE said.

According to the institute, the contraction was "explained mainly by the negative influence of the 11.9-percentage-point drop in domestic demand, as well as the 4.4-percentage-point drop in net external demand."

INE explained that there was a greater decrease in exports of goods and services (down by 39.6 percent) than in relation to imports (down by 29.7 percent) "due in large part to the almost interruption of non-resident tourism."

The latest figures revised the Q2 GDP projection made on July 31, which was down 16.5 percent year-on-year.

According to INE, the revision was necessary due to the "integration of additional primary information, namely related to international trade in goods and services in June."