Portuguese Economy Keeps Pace as External Demand Bolsters Growth

Portugal maintained its economic momentum in the second quarter, while falling short of economists’ predictions.

Gross domestic product rose 0.2 percent in the three months through June, the Lisbon-based National Statistics Institute said in a preliminary report on Friday. That’s the same rate recorded in the previous two quarters. Economists expected an increase of 0.3 percent, the median of seven estimates in a Bloomberg survey showed. From a year earlier, the economy expanded 0.8 percent.

Prime Minister Antonio Costa’s government forecasts economic growth will accelerate to 1.8 percent this year from 1.5 percent in 2015. Costa is relying on a reversal of state salary cuts and an increase in indirect taxes to drive the recovery.

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