Portugal GDP


Growth stabilizes in Q2

GDP expanded a seasonally-adjusted 0.4% in Q2 over the previous quarter, according to detailed data published by Statistics Portugal on 31 August. The expansion was in line with the result tallied in the previous quarter. On an annual basis, the economy grew 1.5% in Q2, which mirrored Q1’s result as well.

The expansion tallied in Q2 was driven by improving external sector, which more than offset softer domestic demand. Private consumption expanded 1.3% in Q2, which was above the 0.8% rise tallied in Q1. Government spending increased 0.7% in Q2 (Q1: +0.2% quarter-on-quarter). Finally, fixed investment recorded its worst performance since Q1 2014, falling 2.4% in Q2 (Q1: +3.9% qoq).

Exports of goods and services in Q2 rose 3.9% over the previous quarter, which contrasted the 0.4% decrease tallied in Q1. Imports expanded 4.5% in Q2, which above the 2.5% rise tallied in Q1. As a result of the strong rebound in exports, the external sector’s net contribution to overall growth rose from minus 1.3 percentage points in Q1 to minus 0.4 percentage points in Q2.

The Bank of Portugal expects the economy to expand 1.7% in 2015 and 1.9% in 2016. FocusEconomics Consensus Forecast panelists expect GDP to expand 1.5% in 2015, which is unchanged from last month’s projection. For 2016, the panel foresees the economy growing 1.7%.

Author:, Economist

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Portugal GDP Chart

Portugal GDP Q2 2015

Note: Year-on-year and annual average variation in %.
Source: Statistics Portugal (INE) and FocusEconomics calculations.

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