Portugal Economy In Severe Recession In Q2
Portugal’s economy contracted massively in the second quarter amid a sharp decline in domestic demand and exports due to the disruption caused by the coronavirus, or Covid-19, pandemic.
Gross domestic product decreased 16.5 percent year-on-year after a 2.3 percent fall in the first quarter, preliminary figures from Statistics Portugal showed on Friday.
Two consecutive quarters of GDP decline qualifies as a technical recession.
The severe decline was largely due to the negative contribution from domestic demand reflecting the significant contraction in private consumption and investment.
Net external demand also contributed negatively due to the steep fall in exports of good and services than imports as non-resident tourism was largely interrupted amid the lockdown.
Both negative contributions were significantly more pronounced than in the previous quarter.
On a quarter-on-quarter basis, GDP fell 14.1 percent in the three months to June after a 3.8 percent fall in the first quarter.