Portugal: Economy records modest expansion in Q4
February 22, 2016
GDP grew by 0.2% at a seasonally-adjusted rate in Q4 over the previous quarter, according to detailed data published by Statistics Portugal on 29 February. The expansion was slightly more than the 0.1% rise tallied in the previous quarter. On an annual basis, the economy grew 1.3% in Q4, which was a tad below Q3’s 1.4% rise and marked the softest growth in a year.
The slight acceleration observed in Q4 came on the back of a softer contraction in domestic demand, which more than offset a deterioration of the external sector on higher imports. Private consumption expanded 0.2% in Q4 over the previous quarter, which was below the 0.4% rise tallied in Q3. Government spending recorded zero growth in Q4 (Q3: -0.5% quarter-on-quarter). Finally, fixed investment fell 1.6% in Q4 (Q3: -2.7% qoq).
Exports of goods and services in Q4 rose 1.5% over the previous quarter, which contrasted the 1.8% fall tallied in Q3. Imports expanded 0.8% in Q4, rebounding from the 3.0% decrease tallied in Q3. As a result, the external sector’s net contribution to overall growth deteriorated from 0.6 percentage points in Q3 to 0.3 percentage points in Q4.
Author: Eric Denis , Economist