Portugal’s GDP May Have Grown in the Second Quarter, Coelho Says

The Portuguese economy may have grown in the three months through June after contracting in the 10 previous quarters, Prime Minister Pedro Passos Coelho said.

“We know the second quarter may have interrupted the sequence of 10 consecutive quarters of recession with a return to growth, even if timid,” Coelho said in parliament today.

Portugal’s economy shrank for a 10th quarter in the three months through March as investment dropped and the government cut spending. Economic growth has averaged less than 1 percent a year for the past decade, placing Portugal among Europe’s weakest performers.

The government projects GDP will contract 2.3 percent this year before growing 0.6 percent next year. The jobless rate will climb to 18.2 percent in 2013 and 18.5 percent in 2014.

To contact the reporter on this story: Joao Lima in Lisbon at jlima1@bloomberg.net

To contact the editor responsible for this story: Anabela Reis at areis1@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.