Portuguese Q3 GDP Growth Confirmed at 3-Year High


The Portuguese economy expanded 0.8 percent on the quarter in the three months to September 2016, following a 0.3 percent growth in the previous period and matching the preliminary estimate. It was the highest growth rate since the last quarter of 2013, driven by a rise in exports and household consumption while fixed investment continued to contract, final figures showed.

It was the tenth consecutive period of expansion and the strongest in three years, mainly boosted by net external demand as exports of goods and services expanded 2 percent (+1.2 percent in Q2), while imports showed no growth (+2 percent in Q2). 

Meanwhile, domestic demand was unchanged from the previous period (+0.6 percent in Q2), as gross fixed capital formation contracted 1 percent (+0.3 percent in Q2), amid a drop in construction (-0.1 percent from -4.1 percent in Q2), intellectual property products (-2.9 percent from +2.1 percent in Q2) and transport equipment (-6.3 percent from +9.9 percent in Q2); and government spending fell 0.6 percent (+0.4 percent in Q2). By contrast, household consumption expanded 0.5 percent, recovering from a 0.1 percent decline in the second quarter.

On the production side, output grew mainly for: Wholesale and retail trade, repair of motor vehicles and motorcycles, accommodation and food service activities (+0.9 percent from +0.3 percent in Q2); financial, insurance and real estate activities (+0.2 percent from -0.4 percent in Q2); industry (+3 percent from +0.6 percent in Q2); and transportation and storage; information and communication (+2.1 percent from +0.1 percent in Q2). Meanwhile, output fell for other services activities (-1.3 percent from +0.8 percent in Q2) and construction (-1.1 percent from -3.4 percent in Q2).

Total employment advanced 1.3 percent, the biggest gain since the third quarter of 2014, following a 0.4 percent growth in the precedent period.

Year-on-year, the economy advanced 1.6 percent, after growing by 0.9 percent in each of the previous two quarters. It was the strongest reading in one year, driven by net exernal demand, as exports rose 5.4 percent (+1.8 percent in Q2) and imports advanced at a slower 1.6 percent (+0.9 percent in Q2). Domestic demand grew 0.9 percent, higher than 0.8 percent in the previous quarter, as households' spending expanded by 1.9 percent (+1.6 percent in Q2) and public expenditure increased by 0.5 percent (+0.7 percent in Q2) while fixed investment contracted 1.5 percent (-2.4 percent in Q2). 

Portuguese Q3 GDP Growth Confirmed at 3-Year High


INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/30/2016 2:19:37 PM