ECONOMY

Portugal in grip of deepest recession since 1975

Sharpest declines were in public sector due to austerity

The Portuguese economy is suffering its worst recession in close to 50 years in 2012 as exports slow and household spending plunges, according to figures released Monday by the National Statistics Institute (INE).

The INE said economic output shrank 3.2 percent in 2012 after a decline of 1.6 percent the previous year. The previous biggest contraction was in 1975, when democracy was restored after the dictatorship of Salazar.

The fall in domestic demand widened to 6.8 percent from 5.8 percent, while the pace of growth in exports slowed to 3.3 percent from 7.2 percent.

The negative contribution of domestic demand increased to 7.0 percentage points from 6.3 points as private consumption fell 5.6 percent, compared with a decline in of 3.8 percent in 2011. The fall in household spending reflected a rise in unemployment to 16.9 percent, a new euro-era high for Portugal, and the impact of the government’s austerity drive, as agreed with the IMF and the European Union in exchange for a 78-billion-euro bailout.

The contribution of net trade – exports minus imports – shrank to 3.9 points last year from 4.7 points in 2011 as the pace of activity in Portugal’s main trading partners slowed.

The downturn accelerated toward the end of last year, with GDP contracting an annual 3.8 percent in the fourth quarter after a decline of 3.5 percent the previous three months. On a quarterly basis, the decline in GDP doubled to 1.8 percent from 0.9 percent in the third quarter.

The Bank of Portugal forecasts GDP will decline 1.9 percent this year. The government initially estimated a decline of 1.0 percent, but later said the fall was likely to be double that amount.

 

 

Para poder comentar debes estar registrado en Eskup y haber iniciado sesión

Darse de alta ¿Por qué darse de alta?

Otras noticias

El Gordo

-----

2º Premio

-----

3º Premio

-----

4º Premio

  • -----
  • -----

5º Premio

  • -----
  • -----
  • -----
  • -----
  • -----
  • -----
  • -----
  • -----

Comprueba tu número

Patrocinio

OpenbankAdvertisement
Avatar
Journalist at El País English Edition

Últimas noticias

Ver todo el día

El laboratorio del infierno

Camden, la ciudad más peligrosa de EE UU, logra reducir la violencia con una policía semiprivada e integrada en la comunidad

Venezuela renueva poderes en medio de una pugna en el chavismo

La votación de magistrados y otros altos funcionarios se demora porque las facciones de Maduro y Diosdado Cabello no coinciden

“Que se haga justicia porque se iba a mandar a la cárcel a un inocente”

Iñaki González subraya que “salga la verdad” y ahora reactivará su indulto

2,5 millones de huevos fritos congelados al mes

El cocinero Javier Yzuel, de la empresa Food Style, va a crecer por Europa de la mano de Findus

LATIN AMERICA

US and Cuba to start talks to normalize relations

Announcement from White House comes after news that US contractor Alan Gross has been freed by Havana

“Isolation has not worked,” says Obama in TV address

US and Cuban presidents take to airwaves to make simultaneous statements on the way forward for relations

Colombia’s FARC guerrillas declare unilateral and indefinite ceasefire

Government must decide whether to do the same or risk ending truce

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana