Portuguese Q3 GDP Growth Confirmed at 0.5%


The Portuguese economy advanced 0.5 percent on quarter in the three months to September 2017, unrevised from the preliminary estimate and following a 0.3 percent expansion in the previous period. Household consumption was the main driver of growth while fixed investment contracted and net external demand contributed negatively.

Domestic demand grew 0.7 from the previous period (0.5 percent in Q2), with household consumption jumping 1.4 percent (-0.5 percent in Q2) and changes in inventories contributing positively to the growth. Meanwhile, government spending was unchanged for the second straight quarter while fixed investment shrank 1.3 percent (1.9 percent in Q2). Investment in transport equipment slumped 16.2 percent (26.5 percent in Q2) and spending on construction contracted 1.6 percent (-1.4 percent in Q2). Meanwhile, investment rose in other machinery and equipment (2.7 percent from 2.9 percent in Q2) and intellectual property products (2 percent from -1.6 percent percent in Q2).

Net external demand contributed negatively, as exports of goods and services rose 0.8 percent (-0.3 percent in Q2), while imports increased at a faster 1.3 percent (0.2 percent in Q2). 

Year-on-year, the economy grew 2.5 percent, unrevised from the preliminary estimate and following a 3 percent expansion in the previous period. Domestic demand advanced 3.2 percent (2.8 percent in Q2), as households' spending expanded by 2.6 percent (2 percent in Q2); fixed investment increased by 8.9 percent (11.1 percent in Q2); and public expenditure edged up 0.2 percent (-0.6 percent in Q2). Net external demand contributed negatively, as exports rose 6.8 percent (7.9 percent in Q2) and imports advanced at a faster 8.1 percent (7.1 percent in Q2).

Portuguese Q3 GDP Growth Confirmed at 0.5%


INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/30/2017 11:33:14 AM