Disconfinement. Portuguese GDP grew 4.2% in the third quarter of the year

In a statement published on the website, INE reveals that “Gross Domestic Product (GDP), in real terms, recorded a year-on-year change of 4.2% in the 3rd quarter of 2021”.

In the previous quarter, the year-on-year change in GDP was 16.1%, “a result largely influenced by the strong impact of the pandemic in the 2nd quarter of 2020”.

“The partial dissipation of this base effect translated into a positive contribution of domestic demand to the year-on-year change in GDP, which was lower than that calculated in the previous quarter”, reads the INE website. “In turn, the contribution of net external demand was slightly more negative in the 3rd quarter, translating a more accentuated increase in Imports of Goods and Services than in Exports of Goods and Services”.

In the 3rd quarter of 2021, “the exports deflator and, to a greater extent, the imports deflator will have registered expressive growths, mainly related to the evolution of the prices of energy products and raw materials, prolonging the loss in terms of trade observed in the previous quarter”.

When compared to Q2 2021, “GDP increased by 2.9% in volume, with a positive contribution from net external demand to the quarter-on-quarter change in GDP, which had been negative in the 2nd quarter, and a less intense positive contribution from domestic demand in the 3rd quarter of 2021″.

INE also says that “GDP growth in the 3rd quarter of 2021 reflects the gradual reduction of restrictions imposed by the pandemic, following the increase in the pace of vaccination against COVID-19, after two quarters with opposite results: the strong reduction in GDP in the 1st quarter (-3.3%), determined by general confinement and a 4.4% increase in the 2nd quarter, marked by the gradual lifting of restrictions on mobility”.