The economy likely shrank significantly in the second quarter as the pandemic took its toll and the full impact of lockdown measures was felt.
This comes after the first quarter marked the worst contraction of GDP on record. Manufacturing collapsed in April and May, while retail sales continued to decline in May as large stores remained closed, albeit more moderately than April’s drop.
Moreover, the vital tourism sector—which accounts for close to a tenth of GDP—remained subdued in May, after grinding to a halt in April. In addition, the recent increase in cases in Lisbon saw the snap-back of some restrictions, which will be hampering the recovery moving into Q3. In better news, the EU recently struck a deal on the EUR 750 billion recovery fund, which should see Portugal receive roughly EUR 15 billion over the next few years.
Learn more about this study about Portugal