Portuguese economy contracts 0.2%

Portugal’s economy contracted by 0.2% in the second quarter of this year.

This followed growth of 2.6% in the first quarter of 2022. The figures released by the National Statistics Institute (INE) were a provisional “rapid estimate”.
The INE has revised Portugal’s economic performance downwards by 0.1 percentage points for Q1.
In like-for-like terms, GDP rose 6.9% in Q2 2022 on the second quarter of 2021 when it had grown by 11.8%.
“In real terms GDP saw a like-for-like variation of 6.9% in the second quarter of 2022 (11.8% in Q1)”, states INE.
It is noted that the evolution in like-for-like terms reflects, in part, a base effect given that in the first quarter of 2021 various measures to tackle the pandemic were in force which conditioned economic activity”, states INE.
The 0.2% contraction of the economy which had been expected by some economists is explained by “the negative contribution in internal demand and less private consumer and investment growth.