Forexpros – Portugal’s economy contracted more-than-expected in the fourth quarter, adding to concerns over the country’s fiscal health, official data showed on Tuesday.
In a report, Portugal’s statistical office said the country’s gross domestic product contracted by a seasonally adjusted 1.3% in the final three months of 2011, after declining by 0.6% in the preceding quarter.
Analysts had expected Portugal’s economy to contract by 1.5% in the fourth quarter.
Annualized GDP shrank at a rate of 2.7%, worse than expectations for a 2.1% decline, after contracting at a rate of 1.8% in the third quarter.
Following the release of the data, the euro was higher against the U.S. dollar, with EUR/USD climbing 0.16% to trade at 1.3207.
Meanwhile, European stock markets were broadly higher. The EURO STOXX 50 rose 0.5%, France’s CAC 40 added 0.35%, Germany’s DAX gained 0.65%, while London’s FTSE 100 edged 0.2% higher.
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