Portugal: Growth rate in the black but below expectations

Page created: Friday, 13 May 2016 14:21 GMT

Economic Activity  GDP

Lisbon, May 13 (Lusa) – The Portuguese economy grew 0.1% in the first quarter of this year against the final quarter of 2015 and was up 0.8% in year-on-year terms, the National Institute of Statistics reported Friday.

This means economic growth slowed over both timeframes following quarterly growth of 0.2% at the end of last year and the 1.7% annualised growth rate recorded a year ago.

The institute reported that the first quarter saw “net external demand register a more negative contribution towards the annualised variation in GDP than in the previous quarter, reflecting a slowdown in the export of goods and services.”

In turn, internal demand “maintained a positive contribution close to that verified in the previous quarter and observing a more intense growth in private consumption while investment decelerated significantly and reflecting in the reduction of Gross Formation of Fixed Capital.”

These figures come in below the estimates of various analysts contacted by Lusa who were expecting quarterly growth of 0.3% and an annualised increase of around 1.1% and already calling into question the 1.8% government growth forecast for this year.