Portuguese economy shrinks 3.3% in first quarter amid lockdown

Portugal's economy contracted 3.3% in the first quarter from the preceding three months, hit by a nationwide lockdown imposed in mid-January to combat what was then the world's worst surge of COVID-19 infections, official data showed on Friday.

Portugal's economy contracted 3.3% in the first quarter from the preceding three months, hit by a nationwide lockdown imposed in mid-January to combat what was then the world's worst surge of COVID-19 infections, official data showed on Friday. The National Statistics Institute said in its flash estimate both external and internal demand contributed negatively to the quarterly change. Gross domestic product also shrank 5.4% from a year earlier, when the country's first lockdown only kicked in in mid-March.

In the October-December period, gross domestic product expanded 0.2% quarter-on-quarter and contracted 6.1% from a year ago. Earlier this month, the government cut its 2021 economic growth forecast to 4% from 5.4% due to the tough restrictions imposed in January that are still being gradually lifted.

Also Read: Hope and caution as Portugal further eases COVID-19 lockdown