ISEG forecasts economic growth to hit 2,6%

The Portuguese GDP increased by 2,6% in relation to the same period last year. There was as well an improvement on some other trust indicators regarding the country, according to data released this Tuesday.

ISEG’s analysis on the economic situation of the country showed that “based upon the quantitative data made available recently, there was a year-on-year 2.6% GDP growth during the second trimester of 2018”,  also adding that GDP increased by 0.8% in relation to the previous trimester of 2018.

In its yearly estimations, the institute indicated that the prediction for the annual increase will stand between the 2.2 and 2.6% rate. It will only be possible to accurately revise the annual growth in September, once the Portuguese National Statistics Office (INE) releases updated data about the second trimester’s growth.

ISEG noted as well that there is a strong decrease in trust in the retail industry, whilst indicators showing the consumers’ trust for services, construction and industry have risen in comparison to the previous month.

In terms of domestic demand, GFCF’s (gross fixed capital formation) growth was higher during the second semester than it was during the first, mostly due to the lack of planning and bad climate conditions that did not prove to be favorable for the construction sector.

Regarding private consumption, the institute predicted that it is very likely that the growth pace will be similar or slightly inferior to what was registered during the first trimester. “with domestic demand reaching a growth of approximately 2,5%, just like the value recorded in the first trimester“.

“During the first trimester imports of goods were significantly higher than exports; the trend during the second trimester, however, was completely reversed” the university’s study showed.