The Portuguese economy grew 2.4% in the third quarter, year-on-year, and 0.8% quarter-on-quarter, driven by domestic demand, confirmed this Friday, 28th, the National Statistics Institute (INE).
These numbers confirm the quick estimate released at the end of October by INE, representing an acceleration in the Gross Domestic Product (GDP) both compared to the same period last year and compared to the previous quarter.
As explained by the statistics office, the “negative contribution of net external demand to the year-on-year variation in GDP was less pronounced in the 3rd quarter, simultaneously reflecting the slowdown in imports of goods and services and the increase in exports of goods and services”.
Domestic demand made a positive contribution to economic growth, although lower than in the second quarter, reflecting the slowdown in investment.
With regard to the chain variation, the contribution of net external demand worsened, “with the acceleration of Imports of Goods and Services surpassing the evolution of Exports of Goods and Services, which increased”.
On the other hand, the positive contribution of domestic demand increased to 1.4 pp, “leading to more intense growth in private consumption and investment”.
For the year as a whole, the Government included growth of 2% in the State Budget. He is the most optimistic among the institutions that follow the Portuguese economy, which all point to growth of 1.9% in 2025.