Portugal GDP

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Portugal: Growth stabilizes in Q1

May 29, 2015

GDP expanded a seasonally-adjusted 0.4% in Q1 over the previous quarter, according to detailed data published by Statistics Portugal on 29 May. The expansion was in line with the result tallied in the previous quarter. On an annual basis, the economy grew 1.5% in Q1, which was above the 0.6% rise recorded in the previous quarter and marked the fastest acceleration since Q3 2010.

The expansion tallied in Q1 was driven by strong domestic demand, which more than offset a deterioration in the external sector. Private consumption expanded a 0.6% in Q1, which was above the 0.1% rise tallied in Q4. Government spending increased 0.8% in Q1 (Q4: +0.1% quarter-on-quarter). Finally, fixed investment expanded at the fastest pace since Q4 2010, jumping 3.0% over the previous quarter (Q4: +0.3% qoq).

Exports of goods and services fell 0.3% over the previous quarter in Q1, which marked a sharp deterioration over the 3.3% increase tallied in Q4. Imports expanded 2.2% in Q1, which was in line with the result tallied in Q4. As a result of the contraction in exports, the external sector’s net contribution to overall growth swung from plus 0.5 percentage points in Q4 to minus 1.0 percentage points in Q1.

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 Q1 2015 1

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


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