The Portuguese economy shrank at a notably slower rate in the first quarter, and the rate of contraction matched economists' forecast, indicting that the ongoing recession has eased, latest data showed Wednesday.
Gross domestic product (GDP) decreased a seasonally adjusted 0.3 percent sequentially in the first quarter, significantly slower than the 1.8 percent fall seen in the fourth quarter, preliminary estimates released by Statistics Portugal said. The rate of contraction matched economists' expectations.
Year-on-year, GDP dropped 3.9 percent during the three-month period, slightly faster than the fourth quarter's 3.8 percent fall. The contraction was in line with economists' expectations.
"Domestic demand made a more negative contribution for the year-on-year change in GDP, determined by the more pronounced decline in Investment, particularly in construction.
These negative factors were partially offset by positive contributions from net external demand, mainly due to the more intense reduction of imports of goods and services.
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