Portuguese Economy Expands 0.2% in Q4

The Portuguese economy advanced 0.2 percent on quarter in the three months to December of 2015 after showing no growth in the previous period while missing market expectations of 0.4 percent. While domestic demand contracted mainly due to a reduction of investment, net external demand contributed positively to the growth, preliminary estimates showed.

Net external demand was the main driver of growth for the second straight period, due to the an expansion of exports, while domestic demand contracted as a result of the reduction of investment.

Year-on-year, the GDP advanced 1.2 percent compared to a 1.4 percent expansion while missing market expectations, driven by a slowdown in domestic demand as investment continued to decelerate while net external demand continued to weighed on growth.

Considering full 2015, the economy advanced 1.5 percent after increasing by 0.9 percent in the previous year, reflecting a less negative contribution of net external demand.

Portuguese Economy Expands 0.2% in Q4

INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
2/12/2016 9:55:44 AM