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Portuguese Gross Domestic Product (GDP) increased 1.8% in the second quarter of this year, having progressed 0.5% in year-on-year terms, keeping pace with the previous quarter, the National Institute of Statistics (INE) revealed on Wednesday. This means that Portugal is growing at a faster rate than the European Union average of 1.3% and even more relative to Eurozone countries (only 1.1%).
According to INE’s estimate, on a year-on-year basis, “the contribution of domestic demand to annual GDP growth has declined, reflecting the deceleration of consumption expenditure and, to a large extent, of investment”.
“Conversely, the contribution from net external demand was less negative than in the previous quarter, as a result of the greater deceleration in imports of goods and services than in exports of goods and services,” he adds.
Regarding the 0.5% increase, which is the same as in the previous quarter, INE explains that “the contribution of domestic demand to the change in the GDP was negative after having been positive in the first quarter”, while “the contribution from net external demand was positive after being negative in the previous quarter “.
Three independent analysts consulted by Lusa agency anticipated an average annual growth of the Portuguese economy of 1.7% in the second quarter, with two of them forecasting a 0.5% increase in the chain.
According to INE, this statistical estimate incorporates revisions to the baseline information previously used, notably in regard to international trade in goods and short-term indicators, which did not imply revisions in the year-on-year and quarter-on-quarter GDP volume change rates.
The final results of quarterly national accounts will be released on August 30.
The Government expects the economy to grow by 1.9% over 2019, which is above the 1.7% forecast by the European Commission, the International Monetary Fund (IMF) and the Bank of Portugal and also above the 1.6% anticipated by the Council of Public Finance.