LISBON, July 30 (Xinhua) -- The Portuguese economy grew by only 0.1 percent in the second quarter (Q2) compared to the first three months of this year, the National Institute of Statistics (INE) reported on Tuesday.
Compared to the first quarter of 2023, the gross domestic product (GDP) grew by 1.5 percent, according to the INE.
Initial estimates had anticipated a slowdown in growth in the second quarter, but the performance was still below economists' predictions. The deceleration is mainly due to the negative contribution of domestic demand, resulting from a decline in private consumption despite an increase in investment.
INE also indicated that net external demand's contribution to the year-on-year variation of GDP was negative "after being positive in the previous two quarters, with imports of goods and services accelerating more sharply than exports."
The Portuguese government projects a 1.5 percent year-on-year growth rate for the whole year. At the same time, entities such as the Bank of Portugal and the International Monetary Fund (IMF) are more optimistic, projecting annual growth rates closer to 2 percent.
