GDP was once again revised upwards to 3% in the second quarter
Initially, the economy had grown 2.8% in the second quarter. In INE's second estimate, there was an upwards revision to 2.9%. A month later, there is a new upwards revision.
The economic growth from the second quarter of 2017 has been revised upwards to 3%, contrary to the 2.9% disclosed by INE in their second estimate, released in August. About one month ago, INE had made an upwards revision of the Portuguese second-quarter GDP to 2.9%, after the first estimate pointed to a 2.8%.
The 3% increase of the Portuguese Gross Domestic Product (GDP) is an homologous comparison, which means it is a comparison between the same period of the previous year. The performance of the Portuguese economy in the second quarter of this year accelerated in comparison to the first quarter of 2017. According to INE, GDP stood at 47,951.2 million euros in the second quarter.
INE justified last month’s revision with the slightly positive contribution of net external demand (0.1%) for the homologous variation of GDP — contrary to what the first estimate had disclosed. In the same estimate, INE also revised upwards the quarter-on-quarter growth from 0.2% to 0.3%.
Internal demand continues to be the main booster of the Portuguese economy, especially as a result of the acceleration in investment. We have to go back 17 years to have such a GDP grew in a quarter.
One of the components which continues to help the Portuguese economy is the external balance of goods and services, which stabilized at 0.8% of GDP, the same as in the previous quarter. The performance reflects “the very similar increases in exports and imports of goods and services, of 2.8% and 2.9%, respectively”, INE sates.
