Portugal GDP Growth Confirmed At 0.6% In Q4


The Portuguese economy advanced 0.6 percent on quarter in the last three months of 2016, in line with preliminary estimates and slowing from an upwardly revised 0.9 percent expansion in the previous period. Domestic demand rebounded as household spending and investment accelerated while net trade dragged down on growth due to a surge in imports. Considering full 2016, the economy expanded 1.4 percent, below 1.6 percent in 2015.

Household spending increased 1.1 percent, following a 0.4 percent rise in Q3 and government spending recovered (0.3 percent from -0.6 percent). Gross fixed capital formation went up 4.6 percent, following a 0.2 percent gain in Q3: investment recovered for transport equipment (9.2 percent from -6.2 percent in Q3) and intellectual property products (2.8 percent from -2.4 percent in Q3) and jumped for construction (7.7 percent from 0.2 percent in Q3). Exports increased 2.5 percent, the same as in the previous period while imports surged 4.5 percent, following a 0.1 percent drop in Q3.  

Year-on-year, the economy expanded 2 percent, following an upwardly revised 1.7 percent increase in Q3 and higher than initial estimates of 1.9 percent. It is the highest growth rate since the second quarter of 2010, mainly due to a recovery in investment and rising household spending.

Considering full 2016, consumption slowed (1.9 percent from 2.2 percent), gross capital formation contracted (-0.9 percent from 4.6 percent) and both exports (4.4 percent from 6.1 percent) and imports (4.4 percent from 8.2 percent) rose at a slower pace. 

INE | Joana Taborda | joana.taborda@tradingeconomics.com
3/1/2017 11:46:43 AM