Portuguese Q2 GDP Growth Revised Up to 0.3%


The Portuguese economy expanded 0.3 percent on quarter in the three months to June 2017, above the preliminary estimate of 0.2 percent and following an increase of 1 percent in the previous period. The reading marked a third year of consecutive growth, but the weakest pace since Q2 2016, mainly due to a negative contribution from net external demand.

Domestic demand grew 0.8 from the previous period (0.6 percent in Q1), with changes in inventories contributing positively to the growth and fixed investment rising 1.1 percent (2.8 percent in Q1). Investment in machinery and equipment went up at a slower pace (0.4 percent from 3.4 percent in Q1), while spending on construction contracted sharply (-3.3 percent from 5.1 percent in Q1). Meanwhile, investment in transport equipment jumped 31.9 percent (-0.8 percent in Q1). By contrast, household consumption contracted 0.3 percent, following a 0.9 percent growth in Q1; and government spending fell 0.1 percent, after showing no growth in the previous period.

Net external demand contributed negatively, as exports of goods and services fell 0.2 percent (2.9 percent in Q1), while imports rose 0.7 percent (1.9 percent in Q1). 

Year-on-year, the economy grew 2.9 percent, above the preliminary estimate of 2.8 percent and following an increase of 2.8 percent in the previous period. It was the strongest growth rate since the last quarter of 2000. Domestic demand grew 2.7 percent (2.6 percent in Q1), as households' spending expanded by 2.2 percent (2.3 percent in Q1) and fixed investment increased by 10.3 percent (9.6 percent in Q1) while public expenditure contracted 0.9 percent (-0.4 percent in Q1). Net external demand also contributed positively, as exports rose 8.2 percent (9.5 percent in Q1) and imports advanced at a slower 7.5 percent (8.8 percent in Q1).

Portuguese Q2 GDP Growth Revised Up to 0.3%


INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/31/2017 11:43:47 AM