Portugal’s economy has shown remarkable resilience, achieving a year-on-year growth of 2.7% in the fourth quarter of 2024. This growth has contributed to an overall increase of 1.9% in the country’s GDP for the entire year, as reported by the National Institute of Statistics (INE). The data reflects a positive trend in economic activity, despite some challenges faced throughout the year.
Key Facts
- Q4 Growth: The economy grew by 2.7% year-on-year in Q4 2024.
- Annual Growth: Overall GDP growth for 2024 stands at 1.9%.
- Comparison to Previous Year: The growth rate for 2024 is a slowdown from the 2.5% increase in 2023.
- Consumer Spending: Increased private consumption has positively impacted the GDP.
- Imports vs. Exports: A notable rise in imports has affected the net external demand negatively.
Economic Performance Overview
The INE’s report indicates that the 2.7% growth in the fourth quarter surpasses the previous quarter’s performance by 0.7 percentage points. The quarter also saw a sequential growth of 1.5%, following a modest increase of 0.3% in the prior quarter. This upward trend in the last quarter of 2024 is a positive sign for the Portuguese economy, which has been navigating various economic challenges.
Looking ahead, economists had projected a GDP growth range of 1.5% to 1.9% for 2024, aligning closely with the INE’s reported figures. The government had anticipated a growth rate of 1.8% in its budget forecasts. The positive economic indicators from the fourth quarter suggest a potential for continued growth, although challenges remain, particularly in balancing imports and exports.
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