The Portuguese economy performed worse in the last quarter

The Portuguese economy performed worse in the last quarter of last year than in preliminary estimates, both quarter-on-quarter and year-on-year. This development has contributed to the most significant year-round economic decline in more than 80 years. As reported by the Portuguese statistical office on Friday, the economy grew by 0.2% quarter on quarter in the fourth quarter, with modest growth being driven mainly by domestic demand. The result is thus worse than indicated by the quick estimate, which indicated growth of 0.4%. In comparison, growth reached 13.3% in the third quarter. The Portuguese economy contracted by 4% in the first quarter and by 13.9% in the second quarter. In a year-on-year comparison, Portugal's economy contracted by 6.1% in the last quarter of last year. Even in this case, the refined figure is worse than the quick estimate. Statistical office pointed to a 5.4% decline in the economy after a 5.7 percent decline in the third quarter. The development in the 4th quarter thus means a year-on-year decline in the economy for the fourth consecutive quarter, when the economy fell by 2.3% in the first quarter and by 16.4% in the second quarter. For the whole of 2020, the Portuguese economy contracted by 7.6%. This represents the most significant decline since 1936.