The country has been particularly affected by the decline in tourism, on which it is very dependent.
Portugal’s Gross Domestic Product (GDP) fell 7.6% in 2020 after rising 2.2% the previous year, due to the coronavirus epidemic, according to a first estimate released Tuesday by the Institute national statistics. This decline is however less pronounced than predicted by the Socialist government or the Bank of Portugal, which expected a drop of 8.5% and 8.1%, respectively.
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In the last quarter of last year, economic activity grew by 0.4% in quarterly variation, after an increase of 13.3% in the three previous months, specified the Ine. On a year-over-year basis, GDP fell 5.9% between October and December, after falling 5.7% in the third quarter.
The fall of the Portuguese economy in 2020, the first in a whole year since 2013, was caused by “the clearly adverse effects of the Covid-19 pandemic“, Said the statistical office in a press release. In 2021, the Portuguese economy is expected to rebound by 5.4% according to the executive, or 3.9% according to the central bank.
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