Portuguese Economy Expands at Slower Pace as Exports Fall

(Bloomberg) -- Portugal’s gross domestic product expanded in the three months through September at a slower pace than in the second quarter as exports fell more than imports.

GDP rose 0.3 percent from the second quarter, when it expanded a revised 0.6 percent, the Lisbon-based National Statistics Institute said in a preliminary report on Wednesday. The economy expanded 2.1 percent in the third quarter from a year earlier, the slowest pace of year-on-year growth since the second quarter of 2016, as private consumption decelerated.

  • Tourism has boosted the Portuguese economy, which last year posted the fastest growth since 2000, helping the country’s minority Socialist administration lower the jobless rate and manage the budget deficit.
  • The government forecasts growth will now slow to 2.3 percent in 2018 and 2.2 percent in 2019 from 2.8 percent last year as exports decelerate.
  • Portugal’s unemployment rate was unchanged at 6.7 percent in the third quarter after dropping in each of the previous six quarters, the statistics institute said on Nov. 7.
  • Read more: Euro-Area Economy Grows Least in Four Years as Germany Drags

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