Reflecting the economic impact of the pandemic, the Portuguese Gross Domestic Product (GDP) registered a strong contraction in the second quarter of 2020, decreasing by 16.5% in volume, in year-on-year terms, after the reduction of 2.3% in the previous quarter. This result is largely explained by the negative contribution of domestic demand to the year-on-year GDP rate of change, which was considerably more negative compared to the previous quarter, reflecting the significant contraction in private consumption and Investment. The negative contribution of net external demand was more pronounced in the second quarter, as a result of the more intense reduction in Exports of Goods and Services than in Imports of Goods and Services, due largely to the non-residents tourism almost being interrupted.
When compared with the first quarter of 2020, GDP diminished 14.1% in real terms (quarter-on-quarter rate of change of -3.8% in the previous quarter). This result is likewise explained, to a large extent, by the negative contribution of domestic demand to the quarter-on-quarter GDP rate of change, and also by a more negative contribution of net external demand.