Portuguese economy growth in 2017 exceeds expectations
The portuguese economy had the highest growth in 17 years in the past year
The portuguese economy doesn’t stop growing and last year was no exception, having grown above expectations. Instead of the 2.6% expected by several institutions, gross domestic product (GDP) rose by 2.7%, according to the Instituo Nacional de Estatística (INE). This was the highest growth in the last 17 years.
According to INE, in the last quarter of last year the economy grew 2.4%, one tenth less than in the third quarter. In turn, GDP increased by 2.4% in volume in the fourth quarter of 2017 (2.5% in the previous quarter). "The positive contribution of domestic demand to the year-on-year change in GDP has decreased as a result of the slowdown in investment and private consumption."
Net external demand (the difference between exports and imports), on the other hand, made a positive contribution, having been negative in the previous quarter. This difference reflects "the acceleration in volume of exports of goods and services and the slowdown of imports," explains INE. The increase of 2.7% last year, in addition to being the strongest since the year 2000, was also higher than expected.
The government, in the Orçamento de Estado (state budget) for 2017, foresaw a growth of 2.6%, a value corroborated by several institutions (Commission, IMF, OECD, Banco de Portugal). INE points out that the Portuguese economy grew by only 1.5% in 2016. The increase between 2016 and 2017 "was due to the increase in the contribution of domestic demand, mainly reflecting the acceleration of investment, since net external demand presented a contribution equal to that recorded in 2016 ".
With GDP growth of 2.4% at the end of 2017, the growth of the Portuguese economy remains below the european average. According to Eurostat, the euro zone expanded by 2.7% in the last quarter (the European Union 2.6%), with growth in Spain and Germany rising by 2.9% and 3.1% , respectively.
Source: Dinheiro Vivo
Photo Credit: Sapo
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