Lisbon, May 29, 2026 (Lusa) - Portugal's national statistics institute (INE) confirmed on Friday that the country's economy grew 2.3% in the first quarter of 2026 compared to the same period in 2025 and recorded zero growth compared to the final quarter of that year.

The institute said the positive contribution of domestic demand to the year-on-year gross domestic product (GDP) growth increased, “reflecting the acceleration of investment and private consumption.”

Conversely, the negative contribution of net external demand deepened in the first quarter of 2026, as imports of goods and services rose faster than exports, which nevertheless recovered.

Net external demand shifted from a positive to a negative contribution in the quarter-on-quarter variation, as imports grew more significantly than exports.

The contribution of domestic demand saw the opposite trend, turning positive due to a significant rise in investment.

These growth figures confirm the flash estimate that the institute had released at the end of April.

The government had estimated 2.3% growth for the full year in the 2026 state budget but has since revised the forecast to 2% due to the winter storm devastation and the Middle East conflict.

MES/LYT // AYLS

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