Portugal’s economic growth slowed to 2.9% in the third quarter from 4.4% in the previous three months, according to official figures, while a further slowdown is likely in the rest of the year due to the new increase in cases.
The easing of coronavirus restrictions in the last quarter increased exports by 10% compared to the second quarter, when they fell 2.2% and supported domestic demand, but the recovery of the tourism industry was slow, while household spending increased much less than in April-June.
The statistical service INE with the data for the second quarter confirmed the initial estimates, including a sharp slowdown in annual growth to 4.2% after rising 16.1% in the previous three months.
“The outlook for the fourth quarter is that of a slowdown compared to the third quarter, due to the rise of new cases, the Omicron variant and the fact that the country will not have a budget before mid-2022,” economists say.
“It will not be easy for the government to achieve its 4.8% growth target in 2021,” they added.
It is recalled that the economy shrank 8.4% in 2020, the biggest decline since 1936.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
