Portugal’s economy grew 0.6% in the second quarter from the previous three months when it shrank 0.4%, in a rebound led by private consumption and exports, the National Statistics Institute (INE) said on Friday, confirming its flash estimate.
In its second reading of gross domestic product, the INE also confirmed year-on-year growth of 1.9%, an acceleration from 1.7% registered in January-March.
Portugal’s quarterly growth, along with that of its largest trading partner Spain, contrasted with contractions of the larger European economies of Germany and Italy.
The INE said the contribution of domestic demand to quarterly GDP was 0.8 percentage points, up from 0.3 pp in the first quarter, as private consumption grew 0.9% after dropping 1% in January-March.
External demand still contributed negatively, but with a much smaller -0.2 pp after -0.7 pp in the first quarter due “to an increase in exports of goods and services and a less intense growth in imports”, the INE said.
Exports, including services in the key tourism sector, increased 0.2%, after falling 0.4% three months earlier.
The Bank of Portugal slashed its full-year growth forecast in June to 1.6% from 2.3%, citing global trade tensions due to U.S. President Donald Trump’s tariff policy.
The government has so far kept its estimate of 2.1% growth this year, up from 1.9% in 2024.