Portugal GDP Growth Quickens to 0.5% in Q1

The Portuguese economy advanced by 0.5 percent on quarter in the first three months of 2019, up from 0.4 percent in the previous period and beating market expectations of 0.3 percent, a preliminary estimate showed. It is the strongest growth rate since the second quarter of 2018.

Growth was mainly supported by domestic demand, while net trade contributed more negatively than in the previous quarter.

Year-on-year, the economy advanced 1.8 percent in the first quarter of 2019, up from 1.7 percent in the previous period. The positive contribution of domestic demand increased, reflecting a significant acceleration in investment; while net external demand contributed negatively to growth, with imports rising faster than exports.

The Portuguese government expects the economy to grow 1.9 percent in 2019, slowing further from the previous year's expansion of 2.1 percent. However, it stands above projections of 1.7 percent by the Bank of Portugal, the European Commission, the International Monetary Fund (IMF) and also above the 1.6 percent antecipated by the Public Finance Council.

Portugal GDP Growth Quickens to 0.5% in Q1

INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
5/15/2019 9:14:15 AM