Portugal’s economy no longer in technical recession

15 November 2013

Portugal’s economy has exited technical recession, posting growth of 0.2 percent in the third quarter after growing 1.1 percent in the second quarter, the National Statistics Institute reported on Thursday in Lisbon.

In the third quarter GDP nevertheless remained below the figure for the same period last year, with year-on-year contraction of 1 percent, but performing better than the 2.1 percent year-on-year decline in the previous quarter.

The numbers now posted in Portugal are in line with performance throughout the Eurozone, which also grew for the second quarter in a row, though that growth is now also positive year-on-year.

This result means that the estimated 1.8 percent contraction presented by the Portuguese government and the commission accompanying the 2013 financial assistance plan for Portugal is closer to being achieved.

In its autumn forecast the European Commission anticipated for the third quarter no chain-linked GDP variation and a 1.3 percent drop year-on-year.

The more positive results now recorded mean that in the last quarter of the year Portugal may not need to grow again to achieve the -1.8 percent forecast for the whole year. If GDP for the last three months of 2013 does not post any variation compared to the third quarter, the economy will present contraction of 1.6 percent, better than expected. (macauhub)