Portugal’s economy in 2012 saw the worst performance since 1975 by contracting 3.2 percent, which was driven down by the 3.8 percent contraction in the final quarter of the year, the Portuguese National Statistics Institute (INE) said in Lisbon Monday.
Although the figures are not directly comparable, in 1975, the year following the 1974 revolution, Portugal’s economy contracted by 5.1 percent.
In nominal terms the 2012 GDP totalled around 165.4 billion euros.
The sharp drop in gross domestic product reflected a decrease in net external demand as a result of a slowdown in exports of goods and services and a more significant negative contribution from internal demand, leading to a sharper drop in private consumption.
“This (…) was associated to a sharper drop in expenditure on non-durable goods and services and on durable goods (changes of -3.9 percent and -23.0 percent in 2012 (-2.1 percent and -18.5 percent the previous year), respectively,” INE said.
According to INE, the amount spent on food fell 0.4 percent in 2012 to a total of 19.5 billion euros, which accounts for around 15 percent of spending by families.
INE also said that in 2012 alone the Portuguese economy lost 205,000 jobs. (macauhub)