The Portugal economy dipped faster than expected in the third quarter as Portuguese businesses and consumers cut back on spending in response to the Government’s drastic austerity drive. GDP contracted by 0.6% in July to September, compared to the previous quarter, and 1.7% compared to the same three months in 2010, according to official figures. The sharp fall – 0.2 percentage points faster than expected – was due to a collapse in domestic demand. Spending by Portuguese businesses and consumers fell by 5 percentage points, after dipping 5.5% in the second quarter.
Here’s Euronews on the figures: