Portugal GDP up 1.5%

Desk Report: The Gross Domestic Product (GDP) grew 1.5% year-on-year and 0.8% quarter-on-quarter during the first quarter, according to the National Statistics Institute (INE).

The data published compares with INE's quick estimate for the first quarter, published on April 30, in which the national statistics body pointed to year-on-year growth in the Portuguese economy of 1.4% and 0.7% compared to the previous quarter of 2023.

Portuguese GDP thus advanced, in year-on-year terms, 1.5% in the first quarter of 2024, after having increased 2.1% in the previous quarter, reflecting a slowdown in private consumption, with growth of 0.7% (compared to 1 .6% in the previous quarter) and investment, which increased by 1.5% (compared to 3.6% in the previous quarter).

For its part, public consumption accelerated slightly to a variation of 1.4% (1.2% in the previous quarter).

Therefore, the contribution of domestic demand to the year-on-year variation in GDP slowed down, from 1.9 percentage points (pp.), in the fourth quarter of 2023, to 1.0 points.

On the other hand, the contribution of net external demand to the year-on-year variation in GDP increased to 0.5 pp. (compared to 0.1 pp. in the previous quarter), with growth of 2.5% in exports of goods and services (3.2% in the 4th quarter) and 1.4% in imports of goods and services (2 .9% in the previous quarter).

Compared to the previous quarter, GDP grew 0.8%, after a chain increase of 0.7% in the 4th quarter.

According to INE, the contribution of net external demand to the GDP quarter-on-quarter rate of change was 1.0 pp., after having been negative in the 4th quarter (-0.2 pp.), while domestic demand registered a contribution of -0.1 pp., after having registered a positive contribution of 0.9 pp. in the previous quarter, with an acceleration in private consumption and a decrease in investmen. 

Biniyougbarta/SAM//