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The Portuguese economy is slowing and stagnating

The Portuguese economy is practically stagnant. The zero spread in exports of goods and services, together with the decline in private consumption, are the main reasons for the slowdown recorded.

Data from the National Statistics Institute (INE) for the second quarter of the year show that GDP grew by 1.5 percent compared to the same period last year, the same value recorded in the first three months of the year, but the value between quarters shows that the growth brake is real and has become more pronounced. Compared to the first three months of the year, the Portuguese economy grew by only 0.1 percent, below forecasts. Between January and March, the network grew by 0.8 percent. The worst result recorded a year ago was in the third quarter of 2023, when GDP fell by 0.2 percent.

The INE highlights the “acceleration of investment and private consumption” compared to last year. In contrast, “the contribution of net external demand turned negative, with no change in exports of goods and services.” When comparing quarters, “the contribution of domestic demand to the chain change in GDP turned positive” in the period from April to June. Again, the worst situation is with exports. The rapid assessment data show that the contribution of “net external demand turned negative.” During this period, there was “zero change in exports of goods and services.”

Author: Diogo Carreira
Source: CM Jornal

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