Portugal’s economy shows signs of cooling

Portugal’s economy is starting to show some signs of cooling in exports and industrial production after a positive first quarter in which the economy’s performance exceeded expectations.

Portuguese exports fell 3.6% in April in both like-for-like and nominal terms which compares to a positive variation of 18.6% in March, according to the National Statistics Institute (INE). Imports also fell, in this case 5.7% when in the previous month they had increased 9.6%.
Industrial production slowed again in April with a like-for-like variation of -7% in April, with the energy sector the main driver for the fall. In March the reduction had been 3.6%.
“The sharp reduction could be related to low stocks and a fall in orders involving various companies” states the INE in a report released on Thursday. The INE – without including energy — indicates the variation was -4.6% in April and -0.9% in March.
The data known from April which has been added to the INE summary shows that the economy was slowing. “The short-term indictors (ICP) regarding economic activity and production available for April show a reduction in industrial output and a slowdown in services and construction” states the INE.