Portuguese GDP Grew at Faster Pace in Second Quarter on Exports

Portugal’s gross domestic product expanded in the three months through June at a faster pace than in the first quarter as exports grew more than imports.

GDP rose 0.3 percent from the first quarter, when it expanded 0.2 percent, the Lisbon-based National Statistics Institute said on Wednesday. The institute had said in a preliminary report on Aug. 12 that GDP rose 0.2 percent from the first quarter. The economy expanded 0.9 percent in the second quarter from a year earlier.

Prime Minister Antonio Costa was sworn in at the end of November and his minority Socialist government is reversing state salary cuts faster than the previous administration proposed, while increasing indirect taxes. The government forecasts economic growth will accelerate to 1.8 percent this year.

The Portuguese Finance Ministry said on Aug. 12 that the 0.8 percent pace of annual growth reported on that day for the second quarter was below what is implied in the 2016 budget. “The economy is taking longer to accelerate,” the ministry said in a statement.

Government spending rose 0.3 percent in the second quarter from the previous three months, while household spending increased 0.1 percent. Investment climbed 0.7 percent. Imports rose 1.1 percent while exports increased 1.3 percent, Wednesday’s report showed.

— With assistance by Ainhoa Goyeneche

    Before it's here, it's on the Bloomberg Terminal.