Friday, May 13, 2016

Economy slowed in the first quarter – Journal News

The economy Portuguese grew 0.1% in the first quarter of this year compared to the last quarter of 2015 and increased 0.8% YoY.

the data was released this Friday by the Institute national Statistics (INE).

this means that the economy slowed in the first quarter, not only face the last three months of 2015 when the Gross domestic Product (GDP) advanced 0.2% in chain, but also year on year, since between January and March last year increased 1.7%.

more intense growth of private consumption, while investment decelerated significantly

according to the flash estimate of national accounts in the first quarter, year on year, “net external demand showed a more negative contribution to the annual GDP growth than in the previous quarter, reflecting the slowdown in exports of goods and services”.

in turn, domestic demand “maintained a positive contribution, close to the previous quarter, noting a more intense growth of private consumption, while investment slowed significantly, reflecting the reduction of fixed capital formation Gross.”

Already compared to the fourth quarter of 2015, the improvement in GDP of 0.1% is also justified by the negative contribution of net external demand, “as a result of exports of goods and services, while domestic demand contributed positively, “the INE.

the figures released by Statistics Portugal are also below average forecasts of several analysts contacted by Lusa, who expected a chain growth around 0.3% and same close of 1.1%.

Among the estimates collected by Lusa, the worst was the Situation Center of the Portuguese Economy (NECEP), the Catholic University, which anticipated an economic growth of 0.1% chain and 0.8% YoY, similar to what was released today by the INE.

the slowdown of the economy in the first quarter makes the annual estimate of economic growth the Government, 1, 8%, is “unlikely” and “very difficult” to meet, admitted analysts Lusa.

the government expects economic growth of 1.8% this year, estimated that signed up for state budget in 2016 and remained with the presentation of the Stability Programme

This goal has been considered optimistic, below the estimates of the main international financial institutions and national level. the European Commission and the Bank of Portugal anticipate that Portuguese GDP to grow 1.5%, while the International Monetary Fund predicts that advances 1.4%.

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