Portugal Q3 GDP Growth Confirmed at 0.3%


The Portuguese economy grew by 0.3 percent on quarter in the three months to September 2018, unrevised from a preliminary estimate and following a 0.6 percent expansion in the previous period. Household consumption and fixed investment were the main drivers of growth while net external demand contributed negatively and government spending was unchanged.

Domestic demand grew 1.1 in the third quarter (vs 0.6 percent in Q2), with household consumption jumping 0.7 percent (vs 0.1 percent in Q2) and fixed investment rising 0.9 percent (vs 1.7 percent in Q2). Investment in other machinery and equipment and armament systems grew at a softer 0.8 percent (vs 5.1 percent in Q2) and that in construction shrank 0.3 percent (vs unchanged in Q2), while spending rose faster on both transport equipment (6.4 percent vs 1.9 percent) and intellectual property products (1.4 percent vs 0.6 percent). Government spending was flat in the third quarter, following a 0.3 percent expansion in the previous period.

Net external demand contributed negatively to GDP growth, as exports of goods and services dropped 3.6 percent (vs 2.3 percent in Q2) and imports decreased at a slower 1.9 percent (vs 2.3 percent in Q2). 

Year-on-year, the economy grew 2.1 percent in the third quarter, unrevised from a preliminary estimate and following a 2.4 percent expansion in the previous period. Domestic demand advanced 2.4 percent (vs 2.7 percent in Q2), driven by households' spending (2.3 percent vs 2.7 percent), fixed investment (4.5 percent vs 4.1 percent), and public expenditure (0.7 percent vs 0.9 percent). Net external demand contributed negatively, as exports rose 3.1 percent (vs 7.1 percent in Q2) and imports advanced at a faster 3.5 percent (vs 7.5 percent in Q2).

Portugal Q3 GDP Growth Confirmed at 0.3%


INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/30/2018 11:30:19 AM