External demand accounted positively while internal demand weighed down on the growth.
Year-on-year, the economy expanded 1.6 percent, better than 0.9 percent in each of the previous two quarters and above expectations of 1 percent. It is the best annual growth in four quarters. Exports for both services and goods rose more than imports and private consumption accelerated.
The Portuguese government targets full year growth at 1.2 percent, down from earlier estimates of 1.8 percent but above European Commission forecasts of 0.9 percent.