Portugal’s Fourth-Quarter GDP Drops 1.3% From Third Quarter
Gross domestic product dropped 1.3 percent from the third quarter, when it fell 0.6 percent, the Lisbon-based National Statistics Institute said in a preliminary report today. Economists predicted a decline of 1.5 percent, the median of eight estimates in a Bloomberg survey showed. GDP dropped 2.7 percent from a year earlier.
Prime Minister Pedro Passos Coelho is facing a recession as he cuts spending and increases taxes to meet the terms of a 78 billion-euro aid plan from the European Union and the International Monetary Fund. As the country’s borrowing costs surged, Portugal followed Greece and Ireland in April in seeking a bailout.
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