Lisbon, Aug. 30, 2024 (Lusa) - Statistics Portugal (INE) confirmed on Friday that the Portuguese economy grew by 1.5% in the second quarter of the year, year over year, and by 0.1% quarter over quarter.

‘The Gross Domestic Product (GDP), in volume, recorded a year-on-year change of 1.5 % in the 2nd quarter of 2024, the same rate as in the previous quarter,' says INE, confirming the flash estimate released at the end of July.

The quarter-on-quarter change was also unrevised: ‘compared to the 1st quarter of 2024, GDP increased by 0.1% in volume (0.8% in the previous quarter)’.

Concerning year-on-year growth, it should be noted that the positive contribution of domestic demand increased, ‘with an acceleration in investment and private consumption’.

Regarding investment, it is worth highlighting that Transport Equipment ‘grew sharply, going from a year-on-year change of -0.7% in the 1st quarter to 21.2%’. Investment in Construction ‘slowed slightly to 0.3 % (0.7 % in the 1st quarter)’.

On the other hand, the ‘contribution of net external demand to the year-on-year change in GDP was negative, after having been positive in the previous two quarters, with imports of goods and services accelerating more sharply than exports of goods and services’.

In the quarter-on-quarter comparison, domestic demand made a positive contribution, with growth in investment and a slowdown in private consumption. Net external demand, in turn, made a negative contribution due to the growth in imports of goods and services (which had fallen in the previous period).

As INE points out, exports only grew thanks to services: ‘Compared to the previous quarter, total exports, in volume, increased by 0.2% (1.5% in the previous quarter), with the goods component registering zero change, while the services component grew by 0.5% (rates of 2.5% and -0.3% in the 1st quarter, respectively)’.

MES/ADB // ADB.

Lusa