Portugal GDP shrinks 3.5 percent year-on-year

AP News
Posted: Dec 07, 2012 12:51 PM

LISBON, Portugal (AP) — Portugal's economy shrank by 3.5 percent year-on-year in the third quarter and decreased by 0.9 percent compared to the previous three months.

The results are worse than forecast and were due to a less marked reduction in the rate of goods and services imported and a slowdown in exports and investments.

According to data released Friday, Portugal's gross domestic product fell 3.5 instead of the predicted 3.4 percent, year-on-year.

On Nov. 27, parliament approved unprecedented tax increases despite a broad public outcry and concerns that the latest austerity package will prolong the bailed-out country's recession.

Portugal, like Greece, Ireland and Cyprus, needed a hefty financial rescue to spare it from bankruptcy, taking a €78 billion ($101 billion) bailout 18 months ago.