In 2017, the Portuguese Gross Domestic Product (GDP) increased by 2.7% in real terms, 1.1 percentage points higher than the rate of change registered in 2016, reaching, in nominal terms, around 193 billion euros. The contribution of domestic demand to GDP growth increased to 2.9 percentage points (1.6 percentage points in 2016), mainly due to the acceleration of Investment. Net external demand registered a negative contribution of 0.2 percentage points (null in 2016), with Imports of Goods and Services accelerating slightly more intensely than Exports of Goods and Services. In nominal terms, the External Balance of Goods and Services represented 1.0% of GDP (1.1% in 2016).
In the fourth quarter of 2017, GDP registered a year-on-year growth rate of 2.4% in volume, as in the previous quarter. The positive contribution of domestic demand to the GDP year-on-year change rate decreased from 3.5 percentage points to 2.4 percentage points, due to the slowing down of Investment and private consumption. Net external demand registered a null contribution (-1.1 percentage points in the third quarter) to year-on-year GDP growth, reflecting the acceleration of Exports of Goods and Services and the deceleration of Imports of Goods and Services.
Comparing with the third quarter of 2017, GDP increased 0.7% in volume (0.6% in the previous quarter). The contribution of net external demand to GDP quarter-on-quarter growth rate shifted from negative to positive, due to the significantly higher acceleration of Exports of Goods and Services than of Imports of Goods and Services. In the opposite direction, the contribution of domestic demand decreased in the fourth quarter, mainly due to the deceleration of private consumption.