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2021.10.2912:52:00UTC+00Portugal GDP Growth Slows In Q3

Portugal's economic growth slowed sharply in the third quarter, preliminary estimates from Statistics Portugal showed Friday.

Gross domestic product grew 4.2 percent year-on-year following a 16.1 percent increase in the the second quarter.

Second quarter figures were boosted by base effect as activity in the same quarter of 2020 was much affected by the coronavirus pandemic.

Consequently, domestic demand growth slowed in the third quarter. Net external demand was more negative as imports growth outpaced that of exports.

Compared to the previous three months, the economy expanded 2.9 percent after a 4.4 percent growth in the second quarter. The pace of growth was the weakest since the fourth quarter of 2019.

This was largely attributed to the positive contribution from net external demand which was negative in the previous quarter.

The gradual decrease of the restrictions to mobility imposed by the pandemic, in line with the increase in vaccination against COVID-19 underpinned growth.

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