Tag Archives: GDP

Portuguese economy leads growth in the euro area with 2.4% in the 3rd quarter

News, , , ,

Portuguese economy leads growth in the euro area with 2.4% in the 3rd quarter

Preliminary data from Statistics Portugal (INE) show performance above the European average, driven by domestic demand and private consumption

The Portuguese economy once again stood out in the European context by recording growth of 2.4% in the third quarter, according to preliminary data released by the National Statistics Institute (INE). This performance places Portugal among the fastest-growing economies in the euro area, during a period marked by economic slowdown in several Member States and an international environment that remains uncertain.

According to INE, the positive evolution of Gross Domestic Product (GDP) was mainly driven by domestic demand, with particular emphasis on private consumption. Households maintained relatively robust consumption levels, benefiting from improvements in the labour market, gradual increases in income and greater price stability compared to the inflation peaks recorded in previous years.

Investment also contributed to economic growth, supported by the implementation of projects financed by European funds, namely under the Recovery and Resilience Plan (PRR). This flow of investment has had an impact on areas such as construction, the energy transition and business modernisation, strengthening the productive capacity of the national economy.

In contrast to Portugal’s performance, several euro area economies continue to face significant challenges, including sluggish growth, weak consumption and the prolonged impact of high interest rates. In this context, Portugal’s results reinforce the perception of economic resilience and a more balanced growth trajectory.

Despite the positive data, experts warn of the need for caution in the coming quarters. Developments in the international context, the monetary policy of the European Central Bank and the ability to maintain investment momentum will be determining factors for the sustainability of growth. Even so, the figures now released confirm that the Portuguese economy has managed to position itself above the European average, consolidating its recovery.

Recovery of the Portuguese economy driven by private consumption

News, , , ,

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.

Portugal’s Budget Surplus in 2024 Reaches 0.7% of GDP

News, , , ,

The National Statistics Institute (INE) announced that Portugal ended 2024 with a budget surplus of 0.7% of GDP, above the 0.4% forecast by the Government. This result reflects higher revenues and reasonable containment of public spending, reinforcing the resilience of public finances in a context of economic adjustment.

The surplus, although positive, contrasts with more conservative forecasts from bodies such as the Bank of Portugal, which are already warning of potential deficits in 2025.

This development highlights the importance of rigorous fiscal management and opens space for future decisions on public investments and tax burden reduction.