Portugal-Most sustained growth for 17 years in 2017

19 February 2018

The Portuguese economy grew last year at its fastest pace since 2000, less than four years after the end of an international bailout plan, thanks in particular to an acceleration of exports over the last three months of 2017, show data published Wednesday by the National Institute of Statistics (INE).

Over the year as a whole, gross domestic product (GDP) grew by 2.7%, a tenth of a point higher than the government's forecast, after growth of 1.5% in 2016. Lisbon anticipates 2.2% growth this year.

In the fourth quarter, growth was 2.4% year-on-year in first estimate, compared with 2.5% in the previous quarter, and 0.7% quarter-on-quarter after 0.5% in the first quarter. July-September period.

"This development is the result of an increased contribution from domestic demand, mainly reflecting an acceleration of investment, while the contribution of net external demand was the same as in 2016," says the INE.

Export growth was the main driver of the last quarter, while the contribution from domestic demand and investment was weaker.

The now well-established recovery has enabled the country to sharply reduce its budget deficit and come out last year of the excessive deficit procedure opened by the European Union.

The Portuguese government expects to have reduced the budget deficit last year to about 1.2% of GDP, the lowest since the 1974 Carnation Revolution that ended the dictatorship and restored democracy in the country.

This year it is targeting a deficit of 1.1% of GDP. (Andrei Khalip Claude Chendjou for French service, edited by Wilfrid Exbrayat)

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