Portugal recorded 0.6% quarter-on-quarter economic growth in the second quarter of 2025, reversing the 0.4% contraction of the previous quarter, according to the National Statistics Institute.
On an annual basis, GDP grew 1.9%, up from 1.7% in the previous quarter. This performance is mainly due to the recovery in private consumption, a key driver of economic activity.
Despite this boost, the Bank of Portugal revised its growth forecast for the full year downward, reducing it from 2.3% to 1.6%, due to tensions in international trade.
The government, however, maintains a more optimistic stance, maintaining its expectation at 2.1%.
This scenario suggests some resilience in the Portuguese economy, but also reinforces the need for policies that foster investment, diversify export markets, and encourage sustainable consumption.