Portugal: Growth picks up in Q3
November 14, 2017
According to a flash estimate released by the National Statistics Institute (INE) on 14 November, Portugal’s economy picked up over the previous quarter, but grew at a more subdued pace in annual terms. In quarter-on-quarter terms, GDP rose 0.5% in Q3, up from 0.3% in Q2. Conversely, on a year-on-year basis, growth slowed to 2.5% in Q3 (Q2: +3.0% year-on-year). Despite the slowdown in annual terms, the economy remains resilient, underpinned by a flourishing tourism sector and strong industrial output.
While a comprehensive breakdown of the components has yet to be released, the preliminary estimate indicates that higher domestic demand drove the upturn in quarter-on-quarter terms, due to faster growth in private consumption, which offset a deceleration in investment. Moreover, the performance of the external sector was reported to have improved compared to the previous quarter, as exports expanded at a faster pace relative to imports.
Author: Nihad Ahmed, Economist