In the fourth quarter 2016, the Portuguese Gross Domestic Product (GDP) registered a year-on-year change rate of 1.9% in volume (1.6% in the previous quarter). GDP acceleration was due to the increase of the domestic demand contribution, featuring an Investment upturn and a more intense increase of private consumption. Net external demand contribution was negative, after being positive in the previous quarter, reflecting a more pronounced acceleration of Imports of Goods and Services when comparing with Exports of Goods and Services.
In comparison with the third quarter, GDP increased 0.6% in real terms (quarter-on-quarter change rate of 0.8% in the previous quarter). Contrary to the previous quarter, the contribution of domestic demand was positive, mainly driven by Investment behaviour. On the other hand, net external demand shifted from a positive to a negative contribution, due to a significant increase in Imports of Goods and Services.
In 2016, GDP recorded a real growth rate of 1.4%, after an increase of 1.6% in 2015. The contribution of domestic demand to GDP growth decreased, reflecting the reduction in Investment, and, to a lesser extent, the deceleration of private consumption. Net external demand recorded a significantly less negative contribution than in 2015.