Lisbon, Jan. 30, 2026 (Lusa) - The Portuguese economy grew by 1.9% in 2025, according to the flash estimate released on Friday by the National Statistics Institute (INE).

This figure compares with the 2% growth forecast by the Government in the state budget for 2026 and is a slowdown compared to the 2.1% increase in 2024.

This growth was driven by domestic demand, "reflecting the acceleration of private consumption and investment", while gross fixed capital formation slowed.

"The contribution of net external demand was more negative in 2025, with exports of goods and services in volume slowing more sharply than imports of goods and services," explains INE.

In the fourth quarter, Gross Domestic Product (GDP) in volume terms grew by 1.9% year-on-year and 0.8% quarter-on-quarter.

According to INE, the negative contribution of net external demand to the year-on-year change in GDP decreased, following a sharp slowdown in imports of goods and services and a reduction in exports of goods and services, reflecting in particular the "decrease in transactions of petroleum products".

Domestic demand also contributed less to growth, with a slowdown in private consumption and investment.

In quarterly terms, it was net external demand that contributed positively to quarter-on-quarter growth, while domestic demand had a negative effect.

The statistics office also states that growth in the third quarter of 2025 was revised downwards by 0.1 percentage points, in both year-on-year and quarter-on-quarter rates, due to the incorporation of new primary information in the calculation of the flash estimate of GDP, including international trade statistics for goods.

The detailed results of the Quarterly National Accounts for the fourth quarter of 2025 will be released on 27 February 2026.

MES/AYLS // AYLS

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