Year-on-year change rate of GDP was 1.9% in volume in the fourth quarter 2016 and 1.4% in the year 2016
In the fourth quarter 2016, the Portuguese Gross Domestic Product (GDP) registered a year-on-year change rate of 1.9% in volume (1.6% in the previous quarter). GDP acceleration was due to the increase of the domestic demand contribution, featuring an Investment upturn and a more intense increase of private consumption. Net external demand contribution was negative, after being positive in the previous quarter, reflecting a more pronounced acceleration of Imports of Goods and Services when comparing with Exports of Goods and Services.
In comparison with the third quarter, GDP increased 0.6% in real terms (quarter-on-quarter change rate of 0.8% in the previous quarter). Contrary to the previous quarter, the contribution of domestic demand was positive, mainly driven by Investment behaviour. On the other hand, net external demand shifted from a positive to a negative contribution, due to a significant increase in Imports of Goods and Services.
In 2016, GDP recorded a real growth rate of 1.4%, after an increase of 1.6% in 2015. The contribution of domestic demand to GDP growth decreased, reflecting the reduction in Investment, and, to a lesser extent, the deceleration of private consumption. Net external demand recorded a significantly less negative contribution than in 2015.
This flash estimate includes revisions in the basic data, particularly due to updated information on external trade of goods, with revisions in nominal terms for the third quarter 2016. Despite this new set of information, the GDP year-on-year and quarter-on-quarter change rates remained unchanged.