Portugal +1,1% vs. Eurozone +0,3%

The Gross Domestic Product (GDP) in Portugal expanded 1,1% in the second quarter of 2013 over the previous quarter.

This value was much higher than the Eurozone average (0,3%) and impressive when compared with another countries of the Eurozone:

Germany: +0,7%
Greece: -4,6%
Netherlands: -0,2%
Ireland: -0,6%
Spain: -0,1%
France: +0,5%
Italy: -0,2%

So, although it's too soon to claim that Portugal GDP is back on track, it's great news for Portugal.
 

Japan Debt reached 200% of their annual GDP

On June 30th of 2013, Japan Debt reached Yen 1.000 trillion (around USD $ 10,46 trillion).

This impressive value is now larger than the economies of Germany, France and the U.K. combined.

Analysts are apprehensive with current Japan trend and are expected new taxes from Japan government to balance Japan deficit.

To understand how serious is this 200% value (public debt as % of GDP of Japan) compare it with south of Europe countries and Ireland which are under great pressure from IMF and rating agencies:

. Greece – 158% (2012)
. Italy – 126% (2012)
. Ireland – 118% (2012)
. Portugal – 115% (2012)
. Spain – 85% (2012)

What would be the immediate consequences if Portugal decide to leave the Euro?

At the day of that decision, it is expected that all financial transactions in Portugal would be suspended including deposits retrievals, except of small amounts for daily needs.

The new Portuguese currency would suffer an immediate devaluation, comparing with the Euro or Dollar, which means that the Portuguese workers’ salaries would also suffer a real devaluation.

Therefore the living cost in Portugal would increase a lot in just 24 hours.

The new reality will generate some chaos because many people, would run to stores as fast as possible to buy everything they can, trying to avoid the huge price inflation expected in result of their country leaving the Eurozone.

The decision of leaving the Eurozone will generate social unrest and can even occur some riots.

This outcome is expected if this decision is made in countries as Portugal, Spain or Greece due to their current financial situation, and this opinion is shared among many economists.