The National Statistics Institute confirmed on Friday that Portugal's economy expanded 0.8% in the second quarter compared with the previous three months, revising up growth from the 0.1% recorded in the first quarter.
This second reading of gross domestic product validated the initial estimate released a month earlier. Measured year-on-year, GDP rose 2.5% in the second quarter, matching the preliminary figure and edging up from the 2.4% annual pace reported for the first quarter.
Net exports were the primary driver of quarterly expansion, contributing 0.7 percentage points to growth after they had subtracted 2 percentage points in the first quarter. The turnaround in the net trade contribution reflected an acceleration in exports alongside a slowdown in imports.
Exports of goods and services, a category that includes the tourism sector, increased 2.5% in the quarter, an increase from the 1.9% gain recorded in the prior quarter. The statistics institute noted that the tourism sector continues to draw record numbers of foreign visitors. Imports expanded by 1% in the second quarter, a marked deceleration from the 5.9% increase seen in the first quarter.
Domestic demand provided a much smaller lift to GDP in Q2 than it did in Q1. The contribution from domestic demand fell to 0.1 percentage points from 2.1 points in the previous quarter, a reduction that reflected weaker investment activity.
Private consumption, which represents roughly two-thirds of GDP, rose by 1% quarter-on-quarter in Q2. That pace was twice the rate posted in the first quarter, indicating that household spending played a notable role in the quarter's expansion.
By contrast, total investment contracted by 2.5% from the first quarter, after having increased 7.9% in the three months prior. The decline in investment dampened the contribution of domestic demand to overall growth.
The government maintains a forecast that the economy will grow 2% this year, a projection the statistics release described as slightly above the 1.9% growth recorded in 2025.
Context and implications: The second estimate leaves the headline figures unchanged from the earlier release but provides additional detail on the composition of growth. Net exports and household spending supported activity in the second quarter, while investment weakened. The tourism-linked export gains and the slower rise in imports were key elements of the quarterly picture.