Portugal GDP Growth Revised Higher

The Portuguese economy expanded 2.8% year-on-year in the last three months of 2024, slightly higher than 2.7% in the preliminary estimate and above a downwardly revised 1.9% in Q3.

It is the strongest economic performance in six quarters, with positive contribution of domestic demand to GDP growth rising to 3.1 percentage points from 2.9 percentage points in the third quarter, reflecting stronger private consumption despite a decline in investment.

At the same time, the drag from net external demand eased to -0.3 percentage points from -1.0 percentage points, as exports slowed at a milder pace than imports.

Compared to the previous quarter, the economy grew 1.5%, the best gain in almost three years, compared to a downwardly revised 0.2% in the third quarter of 2024.

Considering full 2024, the Portuguese economy expanded 1.9%, below 2.6% in 2023.