Portugal Economy Grew 1.4%

The Portuguese economy grew by 1.4% in 2016, down two-tenths of a percentage point compared to the 1.6% growth recorded in 2015, the National Statistics Institute said in Lisbon, Portugalnews reported. The recorded growth is, in fact, less than all government forecasts, other than those included in the draft State Budget Law for 2017 of 1.2%, after earlier forecasts of 2.4% in August 2015, 2.1% in the State Budget for 2016 in October 2015 and 1.8% after negotiations with the European Commission. INE also said the contribution of domestic demand to the change in gross domestic product declined, reflecting a drop in investment and, to a lesser extent, the slowdown in consumer spending, and net external demand was significantly less negative than in 2015. Portugal’s GDP in the fourth quarter of 2016 increased 1.9%, against a variation of 1.6% in the third quarter, as a result of an increase in the contribution of domestic demand, with a recovery of investment and higher consumer spending growth.