Portuguese GDP Stagnates in Q3

The Portuguese economy showed no growth in the three months to September, compared to 0.5 percent growth in the previous quarter and matching preliminary estimates. While domestic demand contracted mainly due to a reduction of investment, net external demand expanded, final figures showed.

Portuguese economic growth stalled in the third quarter of 2015 after five straight periods of expansion as domestic demand shrank by 0.5 percent (against +1.2 percent in Q2), due to a 2.9 percent contraction of gross fixed capital formation (against +1.4 percent) and a 0.6 percent fall in government expenditure (against +0.8 percent), while household spending grew by 0.5 percent (against +1 percent). Meanwhile, net external demand expanded, as imports of goods and services decreased by 3 percent (against +4.7 percent in Q2) while exports fell at a slower 2.1 percent (against +3.2 percent). 

Total employment shrank 0.5 percent, following a 0.9 percent growth in the precedent quarter.

Year-on-year, the economy advanced 1.4 percent, easing from a 1.6 percent growth in the previous quarter. Final consumption expenditure grew 1.9 percent, after increasing 2.6 percent in the previous quarter, as households spending expanded by 2.4 percent (+3.2 percent in Q2) and public expenditure increased by only 0.4 percent (+0.6 percent in Q2). Fixed investment grew 1.9 percent (+5.3 percent in Q2), contributing to a 1.7 percent expansion of gross capital formation (+8.5 percent in Q2). Exports increased by 3.9 percent (+7.3 percent in Q2) and imports went up by 4.9 percent (+12 percent in Q2). As a result, net exernal demand registered a significant negative contribution to the economy's growth.

Portuguese GDP Stagnates in Q3

INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/30/2015 11:46:58 AM