Data released by Statistics Portugal shows that Portugal's GDP contracted by 1.4% in 2013, a performance better than previously expected by the government and the central bank.
The data indicates that, positively influenced by sustained export growth and a gradual recovery in domestic demand, Portugal's economy successfully achieved quarter-on-quarter growth in the second quarter of last year after 10 consecutive quarters of contraction. In particular, the country's economic recovery was significant in the fourth quarter of last year, with a year-on-year growth of 1.7% compared to 2012.
Previously, the Portuguese government and the "Troika"—composed of the European Commission, the European Central Bank, and the International Monetary Fund—had predicted that the country's economy would contract by 1.8% in 2013. The latest economic report released by the Bank of Portugal last December predicted that the Portuguese economy would contract by 1.5% in 2013.
In May 2011, Portugal reached a bailout agreement totaling 78 billion euros with the "Troika." At the end of February this year, Portugal successfully passed the 11th review of the international bailout program implemented by the "Troika." The Portuguese government has repeatedly stated that it will be able to exit the international bailout on schedule this year and predicts that the domestic economy will grow by 1.2% this year.
