Portuguese GDP Growth Remains Strong

The Portuguese economy advanced 0.7 percent on quarter in the last three months of 2017, above an upwardly revised 0.6 percent growth in the previous period in line with the preliminary estimate.

Exports rose 4.3 percent (0.5 percent in Q3) while imports grew only 2.9 percent (1.2 percent in Q3), switching the net trade contribution to positive (0.6 percentage points from -0.3 percentage points in Q3). On the other hand, the contribution from domestic demand fell to 0.1 percentage point from 1 percentage point in Q3, due to a slowdown in private expanditure (0.3 percent compared to 1.4 percent) and a drop in investment (-0.4 percent compared to +0.2 percent). 

Year-on-year, the economy advanced 2.4 percent, the same as in the previous period and in line with the preliminary estimate.

Considering full 2017, the GDP advanced 2.7 percent, the most in 17 years and beating government estimates of a 2.6 percent rise. The contribution from domestic demand increased to 2.9 percentage points (1.6 percentage points in 2016), mainly due to higher investment. Net external demand registered a negative contribution of 0.2 percentage points (null in 2016), as imports rose faster than exports. In nominal terms, the trade balance of goods and services represented 1 percent of the GDP (1.1 percent in 2016).

Portuguese GDP Growth Remains Strong

INE | Joana Taborda | joana.taborda@tradingeconomics.com
2/28/2018 4:08:09 PM