2013 was the third year of economic adjustments due
to implementation of the measures provided for in the
agreement with the Troika, which resulted in a reduction
in GDP and a continued decline in domestic demand.
From the end of the first half, however, the economic
data started to show the first signs of a change of trend:
the Portuguese economy started to grow and domes-
tic demand recovered, posting year-on-year growth of
1.6% in the last quarter, outperforming all other euro-
zone members, including Germany.
As a result, the unemployment rate fell slightly, while
employment levels showed signs of recovery.
Meanwhile, Portugal attracted more foreign tourists (a
trend which, according to some analysts, has gained
traction during the three years of the financial adjust-
ment programme), further contributing to the upturn in
consumption.
These positive signs are particularly important for the Ib-
ersol Group because they have a practical effect on do-
mestic demand; not that they had a material impact on
the results for 2013, but they serve as indicators for 2014.
Overall, the year continued to be marked by the effects
of the austerity measures, with a continuation of the
contraction in demand, an effective decline in dispos-
able income and a high level of unemployment, with di-
rect implications for consumer behaviour.
Combined, these factors led to a continuation of the
contraction in consumption.
On the downside, contrary to expectations (Portugal
Introduction
