Portugal: Economic growth remains unchanged in Q3
Economy posts another uninspiring print in Q3: According to a preliminary reading, the economy expanded 0.2% on a seasonally adjusted quarter-on-quarter basis in the third quarter. Q3’s reading matched Q2’s upwardly revised increase but fell short of the Euro area average of 0.4%. Meanwhile, year-on-year economic growth accelerated to 1.9% from 1.6% in the second quarter.
Contrasting dynamics continue in the quarter: According to the statistical office, Portugal’s economy continued to operate at two different speeds in quarterly terms: Though the external sector continued to detract from growth, this was largely offset by a positive contribution from domestic demand. In particular, the statistics office noted sturdy expansions in both private spending and fixed investment.
A complete breakdown will be released on 29 November.
GDP growth to accelerate, though downside risks loom: Our panel expects sequential growth to be kicking into a higher notch in Q4, buoyed by ongoing monetary policy easing and low inflation. After an expected slowdown overall in 2024, economic growth is expected to accelerate slightly next year. Renewed political uncertainty is a downside risk.