Portugal’s GDP registered biggest contraction ever recorded

File photo of a man with a Portuguese flag walks along Avenida da Liberdade in Lisbon. EPA-EFE/JOSE SENA GOULAO

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Portugal’s gross domestic product shrank 14.1% in the second quarter of 2020, marking the biggest contraction ever, as lockdowns imposed to contain the spread of the coronavirus outbreak hit key sectors of the economy.

In a flash estimate, the National Institute of Statistics (INE) said that between April and June this year, the country’s GDP plunged 16.5% compared to the same period in 2019, affected by collapsed private consumption, investment and exports.

The Bank of Portugal predicts Portuguese GDP will contract 9.5% in 2020, the biggest recession in a century, while the government estimates it will fall 6.9%.

Last year, the country reported 2.2% growth and the first budget surplus in its 45-year democratic history.

s2.reutersmedia.net

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