Portugal: Portuguese economy motors ahead in Q1
May 15, 2017
Portugal’s GDP increased 1.0% in Q1 2017 from Q4, according to preliminary figures published on 15 May by the National Statistics Institute (INE). The reading was up from the prior quarter’s revised 0.7% figure (previously reported: +0.6% quarter-on-quarter) and significantly overshot analysts’ expectations of a 0.7% expansion. On a year-on-year basis, growth also shot up from a revised 2.0% in Q4 (previously reported: +1.9% yoy) to 2.8% in Q1, the highest rate in well over a decade.
According to the Institute, the expansion was driven by greater investment and a positive contribution from the external sector, with export growth outpacing import growth as firms likely benefited from stronger demand from other European trading partners. On the other hand, private consumption growth dropped off, with higher inflation likely eating into consumers’ purchasing power.
Author: Oliver Reynolds, Economist