Portuguese GDP flat in Q3

Portuguese GDP was flat in Q3 after growing 0.5% in Q1 and in Q2. According to INE (Statistics’ office), domestic demand contributed with -0.5%qoq to GDP, but was fully compensated for by a poitive contribution from net exports, due to the decline in imports (note that Portuguese domestic demand has a relatively high import content).

On the domestic demand front, gross fixed capital investment recorded a sharp fall, down 2.9%, private consumption was up 0.5% due to a rise in food and non-durable goods and public consumption was down 0.6%.

Overall, the data is consistent with a deceleration in the economy, possibly due to the uncertainty surrounding election, particularly regarding policies for investment such as the implementation of investment-inducing fiscal measures that were introduced with the previous Government.