Portuguese economy slows slightly in second quarter

12 October 2007

Brussels, Belgium, 12 Oct – The Portuguese economy grew by 0.5 percent in the second quarter of 2007, as compared to the 0.6 percent seen in the first quarter, according to estimates from Eurostat published Thursday.

Against the same quarter of 2006, Portugal’s gross domestic product (GDP) rose 1.6 percent, below the 2.5 percent average posted by the Euro Zone as a whole and the 3.2 percent for the 27 nations of the European Union and 2 percent posted in the same period of the previous year.

The second set of figures from Eurostat for GDP in the second quarter confirmed those published on September 4, which showed deceleration both for the Euro Zone and the EU overall.

Euro Zone growth in the second quarter was 2.5 percent year on year as compared to 3.2 percent for the same year-ago period.

the slowdown, to the lowest level in two years, is explained by a fall in investment by companies, seen for the first time since 2002.

In the EU as a whole, the growth rate of GDP totaled 2.8 percent, against 3.3 percent in the previous quarter. (macauhub)