Portugal's Economic Growth Slows in Q3

Portugal’s economy expanded by 0.2% quarter-on-quarter in the third quarter of 2026, slowing from an upwardly revised 0.9% growth in the previous quarter, according to preliminary data. The deceleration reflected a negative contribution from net external demand, as exports of goods and services fell more sharply than imports. Domestic demand remained supportive, although private consumption growth eased, while investment rebounded following a decline in the previous quarter. On an annual basis, the economy grew by 2.4%, down from an upwardly revised 2.6% in the second quarter.

Portugal’s economy grew 0.8% quarter-on-quarter in Q2 2026, accelerating from a 0.1% expansion in Q1, was driven by stronger net exports and household consumption. Exports increased 2.5% in Q2, up from 1.9% in Q1, while imports slowed sharply to 1.0% from 5.9%. Household consumption growth also accelerated to 1.0% from 0.5%. In contrast, fixed investment fell 1.9%, following a 2.9% increase in the previous quarter. The recovery follows a weak first quarter, when severe storms disrupted activity in central Portugal and a surge in energy prices linked to the conflict in Iran weighed on economic activity. Year-on-year GDP growth edged up to 2.5% from 2.4% in Q1. The government expects the economy to expand 2.0% in 2026, while the Bank of Portugal forecasts 1.8% growth, following a 1.9% expansion in 2025.

Portugal's economy expanded by 0.8% in the second quarter of 2026, accelerating from an upwardly revised 0.1% growth in the previous quarter, according to preliminary estimates. The rebound was driven by a positive contribution from net exports and stronger private consumption, although investment declined. The recovery followed a weak first quarter, when severe storms disrupted activity in central Portugal, while a surge in energy prices linked to the conflict in Iran weighed on growth. On an annual basis, GDP growth edged up to 2.5% from a revised 2.4% in the previous quarter. The government expects the economy to expand by 2.0% this year, while the Bank of Portugal projects slightly slower growth of 1.8%, following 1.9% growth in 2025.