Portugal | Economic Overview | 2013 Q1

Recent updates for Portugal show further deterioration of the economy. In the first quarter of 2013, GDP shrank an annual 3.9 percent, the 10th consecutive quarter of contraction. Moreover, the unemployment rate reached a new record of 17.7 percent in the first quarter reflecting the magnitude of the current recession. To make things even worse, industrial production has been consistently declining and business confidence remains at very low levels. Also, consumer confidence has been deteriorating as tough austerity measures are taking a heavy toll on already low salaries and pensions. On the positive side, the yield on government 10-year bonds dropped sharply to December 2010 levels. Furthermore, the current account deficit, traditionally problematic to Portugal, has improved substantially.

5/15/2013 12:37:53 PM