GDP went up 0,5% compared with the previous quarter, and it rose 2,3% in comparison to the same quarter of the previous year. After a very weak first quarter, the economy is ramping up.
The Portuguese economy went up by 0,5% when compared with the previous quarter (Q1), and it rose 2,3% in comparison with the same quarter (Q2) last year.
The dataset confirmed economists’ predictions which had showed there would be a growth acceleration during the second quarter. The average GDP growth in the EU19 decreased reaching 2,2%, meaning Portugal stood slightly above the euro area average (by 0,1%).
During the first quarter, the GDP had risen by 0,4% in comparison to the previous quarter, showing there was a deceleration of the economic growth at the beginning of the year.
Economists expected to witness a growth during the second quarter, with GDP increasing by 0,3% and 0,8%, accounting for a 2,1% and a 2,6% growth rate when compared with the same quarter the year before.
These results can be challenging for the Portuguese government while it is drafting the final arrangements for the State budget of 2019, especially given that the eurozone is showing a slowing trend.
In 2017, the Portuguese economy registered a 2,7% growth rate, its highest value since 2000. By the end of 2017, GDP growth rate increased by 0,7% and by 2,4% in comparison to the same period, the year before.
The Portuguese Office for National Statistics (INE) also noted that the GDP growth was motivated by the rise in the domestic demand, which represented a positive outcome for the economy, given the increase in the private consumption registered in this period.
A negative contribution of net external demand was observed, in turn, a decline which had already been registered during the previous quarter.
More details about the Portuguese performance during the second quarter will only be released by INE on the 31st of August.
