Portuguese Business Association warns of huge break in activity

03/08/2020

For the president of the business association, the resumption of activity is still "a mirage".

The National Institute of Statistics (INE) released this Friday the Gross Domestic Product (GDP) of the second quarter, a period that includes the state of emergency and the containment measures taken due to the Covid-19 pandemic.

On the INE website it is possible to know that the "Gross Domestic Product (GDP) registered a strong contraction in real terms in the 2nd quarter of 2020, having decreased 16.5% in year-on-year terms, after the 2.3% reduction in the previous quarter. ", justified "largely by the negative contribution of domestic demand to the year-on-year change in GDP, which was considerably more negative than that observed in the previous quarter, reflecting the significant contraction in private consumption and investment ".

For AEP - Associação Empresarial de Portugal, these figures confirm "what Portuguese companies were already feeling: a huge fall in activity".

According to the association's analysis, the two main destination markets for Portuguese exports registered the most severe evolution with Spanish GDP falling 18,5% in a chain and 22,1% year-on-year and French GDP registering a drop of 13,8% in a chain and 19% year on year. In addition, there was a sharp drop in Germany (-10,1% and -11,7%) and in Italy (-12,4% and -17,3%).

For the president of AEP, Luís Miguel Ribeiro, "these data give rise to great concern and demonstrate well that, unfortunately the much desired phase of recovery is still a mirage at the moment and are therefore, one more proof of the need for extra attention and fundamentally of a quick performance by the public policies ".