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Portugal GDP Rebounds In Q2

Portugal GDP Rebounds In Q2

Portugal’s economy expanded in the second quarter after contracting in the previous three months, as activity began to gradually recover after a lockdown to curb the a fresh wave of the coronavirus pandemic.

Gross domestic product grew 4.9 percent from the first quarter, when it shrunk 3.2 percent, preliminary estimates from Statistics Portugal showed Friday.

“There was a general confinement due to the worsening of the pandemic, followed by a plan to gradually reopen the economy as of mid-March,” the statistical office said.

Quarterly growth was largely driven by the positive contribution of domestic demand and a less negative contribution of net external demand.

Year-on-year, GDP rose 15.5 percent in the second quarter after a 5.3 percent fall in the previous quarter. The increase was the first since the fourth quarter of 2019.

“This evolution is influenced by a base effect, as the restrictions imposed on economic activity as a result of the pandemic were felt more intensely in the first two months of the second quarter of 2020, leading to unprecedented contraction of economic activity,” Statistics Portugal said.

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