Portugal's first-quarter contraction confirmed, exports fall
In its second reading of gross domestic product, the National Institute of Statistics (INE) also confirmed its year-on-year growth figure of 1.6% released at the beginning of the month. In the fourth quarter, Portugal's economy grew 2.8%.
INE said the contribution of net external demand to the quarter-on-quarter GDP was minus 0.7 percentage points, while in the fourth quarter it had contributed positively with 0.7 pp, "reflecting a decline in exports and an increase in imports".
Exports of goods and services, including the key tourism sector, fell 0.4% from the previous three months.
Meanwhile, imports increased 1% anticipating the tariffs announced by U.S. President Donald Trump - most of which have been temporarily suspended - and a potential response from the European Union.
INE said the positive contribution of domestic demand also decreased to 0.1 pp, from 0.7 pp in the fourth quarter, "with a reduction in private consumption", which fell 1.1% in the first three months after growing 2.8%.
Total investment increased by 3.8% with the help of European Union funds, after it fell 5.0% in the previous quarter.
The Bank of Portugal has forecast the economy should grow 2.3% this year in an acceleration from last year's 1.9%, but it said a tariff war could reduce that projected growth by 0.9 percentage points.
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