Portuguese Economy Grew Less Than Forecast in Second Quarter

Portugal’s economy grew less than forecast in the three months through June.

Gross domestic product rose 0.4 percent from the first quarter, when it expanded at the same pace, the Lisbon-based National Statistics Institute said on its website today. Economists predicted a rise of 0.5 percent, according to the median of eight estimates in a Bloomberg survey. GDP rose 1.5 percent from a year earlier, a seventh increase.

Portugal emerged from recession during 2013, and exited a three-year bailout program from the European Union and International Monetary Fund in May of last year. Prime Minister Pedro Passos Coelho, who faces elections in October, still has to cut spending to meet budget targets. His government forecasts exports and investment will help drive growth this year.

The government on April 16 raised its growth forecast for 2015 and said it sees the economy accelerating in the following two years. GDP will expand 1.6 percent this year, according to the government. The economy grew 0.9 percent in 2014, after contracting in the previous three years.

The statistics institute on Aug. 5 said Portugal’s unemployment rate dropped to the lowest in more than four years.

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