‘Contradiction’ between EU slowdown, pick up in Portugal exports

By TPN/Lusa, in Business · 05-07-2018 14:46:00 · 0 Comments
‘Contradiction’ between EU slowdown, pick up in Portugal exports

Portugal’s Forum for Competitiveness, a business lobby group, on Wednesday noted “contradictory trends” between a slowdown in the European economy and a recovery in Portuguese exports in April, saying that it will only emerge in the coming months “which of the effects will predominate”.

The position was laid out in the June note of the Forum’s research department.
“We are in the presence of two contradictory trends: the European economy is decelerating, more than foreseen, [while] Portuguese goods exports recovered in April from the sharp deceleration of the first quarter,” the note said. “So we shall need to analyse the data of the coming months to verify which of the effects will predominate.”
In the first quarter, the document notes, exports were above all responsible for a slowdown in growth in Portugal’s gross domestic product. Indeed, in the first four months of the year there was a deficit on the current and capital account of €290 million, against a surplus of €267 million in the same period of 2017.

“All components contributed to this development, except ... services, where the heading of travel and tourism stood out, [which is] constantly improving,” the note states.
In the second quarter of the year, it goes on to say, the deficit is expected to widen further, before balancing out in the second half, “in line with the marked seasonality of this indicator”.


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