Compared with the previous period, GDP grew 0.2 percent, easing from an increase of 1 percent in the first quarter and missing market consensus of 0.5 percent. The reading marked a third year of consecutive growth, but the weakest pace of expansion since Q2 2016, mainly due to a negative contribution from net external demand. Meanwhile, domestic demand increased further boosted by investment, as both changes in inventories and gross fixed capital formation contributed positively, although the latter was lower than the observed in the previous quarter.
Year-on-year, GDP growth stood at 2.8 percent, unchanged from the previous period's nine-year high but below market expectations of 3.1 percent. The positive contribution of domestic demand remained strong, more intense than in the previous quarter, due to the acceleration of investment. Net external demand registered a slight negative contribution, reflecting the more pronounced deceleration in exports relatively to the deceleration in imports.
The government expects the economy to grow 1.8 percent in 2017.