On a quarterly basis, the contribution from domestic demand increased (0.9 percentage points compared to 0.8 percentage points in Q1) while net trade subtracted 0.4 percentage points to growth, the same as in the previous period. Household spending was flat after a 0.8 percent rise in Q1; investment jumped 4.7 percent (1.5 percent in Q1) with inventories contributing 0.6 percentage points to growth (-0.2 percentage points in Q1); exports increased 1.8 percent (0 percent in Q1); and imports went up 2.5 percent (0.9 percent in Q1).
Year-on-year, the economy grew 2.3 percent, above 2.1 percent in the previous quarter and in line with earlier estimates. The contribution from domestic demand went up, mainly due to higher household (2.6 percent compared to 2.1 percent in Q1) and public spending (0.4 percent compared to 0.3 percent in Q1). The tourism sector continues to boost the economy: spending in national territory (3.4 percent) went up faster than spending by residents (2.6 percent). On the other hand, investment rose at a slower rate (6.4 percent compared to 7.1 percent) due to 6.6 percent drop in investment in material transportation. Net trade weighed down on growth more amid higher imports (7.9 percent compared to 5.6 percent in Q1) while exports rose at a faster pace (6.8 percent compared to 4.7 percent).
For 2018, the Portuguese government targets growth at 2.3 percent.