Lisbon, July 30, 2025 (Lusa) - The Portuguese economy grew 1.9% in the second quarter of this year, year-on-year, and 0.6% compared to the previous quarter, according to the flash estimate released on Wednesday by Statistics Portugal (INE).

“The positive contribution of net external demand to year-on-year GDP [Gross Domestic Product] growth became less pronounced, reflecting the more pronounced slowdown in imports of goods and services compared with exports of goods and services,” explains INE.

On the other hand, “the positive contribution of domestic demand to year-on-year GDP growth declined in the second quarter as a result of the slowdown in investment”.

From the first quarter to the second, GDP increased by 0.6% in volume, following a 0.4% decrease in the previous quarter.

The INE said that “the contribution of net external demand to the chain variation of GDP improved, with exports of goods and services recording growth after the previous quarter’s decline.”

Similarly, the positive contribution of domestic demand increased, with growth in private consumption.

INE released figures today that stand at the upper limit of economists’ forecasts, which pointed to year-on-year GDP growth of between 1.4% and 1.9% and chain expansion of between 0.2% and 0.7%.

The statistical institute also notes that the incorporation of new primary information in the calculation of the flash estimate of GDP, including statistics on international trade in goods for the first quarter of 2025, led to an upward revision of 0.1 percentage points in the year-on-year and chain rates of change in GDP for the first quarter of 2025 released on 24 June (from 1.6% and 0.5%, respectively, to 1.7% and 0.4%).

This is a 30-day flash estimate, and the INE will release more detailed results on the evolution of the Quarterly National Accounts on 29 August.

PD/ADB // ADB.

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