In 2020, Portugal's GDP contracted by 7.6%, with a 5.9% year-on-year contraction in Q4.
Portugal’s gross domestic product last year contracted by 7.6%, with a 5.9% year-on-year contraction in Q4, according to a flash estimate released on Tuesday by the National Statistics Institute (INE).
“In 2020, GDP recorded a contraction of 7.6% in volume (growth rate of 2.2% in 2019), the most intense of the available National Accounts series, reflecting the adverse effects of the COVID-19 pandemic on economic activity,” reads the INE release.
It cited a “more negative” contribution of net external demand, with exports and imports of goods and services diminishing significantly, “particularly in the case of tourism exports which had an unprecedented reduction.”
Portugal’s government has estimated a contraction in GDP of 8.5% last year, while the European Commission and Portugal’s official budget watchdog, the Public Finance Council, both estimate a contraction of 9.3%. The International Monetary Fund is more pessimistic (-10.0%).
More optimistic estimates have come from the Bank of Portugal and the Organisation for Economic Cooperation and Development (OECD), which currently estimate a shrinkage of 8.1% and 8.4% respectively.