Portugal's gross domestic product sees 1.5 percent increase in Q2

(MENAFN) In the second quarter of the year, Portugal's gross domestic product (GDP) saw a 1.5% increase on an annual basis, maintaining the same yearly growth rate observed in the previous quarter, according to a flash estimate released on Tuesday. The National Statistics Institute of Portugal attributed this growth to heightened investments and increased private consumption, which played a significant role in driving the nation's economic performance.

Despite the positive contributions from investments and consumption, the overall impact of net external demand on the GDP was negative. This was due to a higher rate of increase in imports of goods and services compared to exports, which detracted from the GDP growth. The statistics office highlighted that while internal economic activities showed strength, the external sector posed challenges to the overall economic balance.

On a quarterly basis, Portugal's GDP experienced a modest rise of 0.1%, a slowdown from the 0.8% growth recorded in the previous quarter. This deceleration indicates a cooling in the pace of economic expansion within the quarter, suggesting that while the economy continues to grow, the momentum has eased somewhat.

The data further revealed a nuanced picture of domestic demand's contribution to GDP changes on a quarterly basis. Although investments continued to rise, private consumption experienced a slowdown, leading to a more restrained positive impact from domestic demand. This balance between increasing investment and tempered consumption growth illustrates the complexities of the economic dynamics at play within Portugal during this period.

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