Portugal Q4 GDP Growth Confirmed at 0.2%

The Portuguese economy advanced 0.2 percent on quarter in the three months to December of 2015 following an upwardly revised 0.1 percent growth in the previous period and matching preliminary estimates. While net external demand expanded, domestic demand contracted mainly due to a reduction of investment, final figures showed.

It was the seventh consecutive period of expansion mainly boosted by net external demand as exports of goods and services expanded 1.5 percent (-1.8 percent in Q3), while imports advanced at a slower 0.8 percent (-3 percent in Q3). By contrast, domestic demand shrank by 0.1 percent (-0.4 percent in Q3), due to a 1.6 percent contraction of gross fixed capital formation (-2.7 percent in Q3) while government expenditure showed no growth (-0.5 percent in Q3) and household consumption grew at a slower 0.2 percent (+0.4 percent in Q3). 

Total employment advanced 0.7 percent, following a 0.5 percent contraction in the precedent quarter.

Year-on-year, the economy advanced 1.3 percent, easing from a 1.4 percent growth in the previous quarter. Domestic demand grew 2.1 percent, the same as in the previous quarter, as households spending expanded by 2.4 percent (+2.3 percent in Q3) and public expenditure increased by 0.9 percent (+1 percent in Q3). Fixed investment contracted 0.9 percent (+2 percent in Q3). Exports increased by 2.3 percent (+4 percent in Q3) and imports went up by 4.3 percent (+5.4 percent in Q3). As a result, net exernal demand registered a significant negative contribution to the economy's growth.

Considering full 2015, the GDP expanded by 1.5 percent (+0.9 percent in 2014), supported by private and public consumption while net external demand held back growth.

Portugal Q4 GDP Growth Confirmed at 0.2%

INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
2/29/2016 11:54:16 AM