The more intense decline of GDP was driven by the reduction of the positive contribution of net external demand, which shifted from 4.7 percentage points (p.p.) in 2011 to 3.9 p.p., due to the deceleration of exports of goods and services, and by the more negative contribution of domestic demand, reflecting the more intense reduction of private consumption.
The external balance of goods and services improved in 2012, moving from -4.4 percent of GDP in 2011 to -0.5 percent. The Portuguese economy presented a Net Lending of 0.4 percent of GDP in 2012 (Net Borrowing of 5.6 percent in the previous year). This evolution was mainly due to the improvements in the external balance of goods and services and the Balance of Primary Income.
In 2012, Investment declined 13.7% in volume (change rate of -13.8% in 2011), presenting a contribution of -2.4 p.p. to the GDP change rate. In nominal terms, the GDP in 2012 reached about 165.4 billion euro.