The Portuguese Gross Domestic Product (GDP) increased by 2.4% in volume in the fourth quarter 2017, when compared with the same period of 2016 (2.5% in the previous quarter). The positive contribution of domestic demand decreased, reflecting the deceleration of Investment and private consumption. On the other hand, the contribution of net external demand was positive (it was negative the previous quarter), due to the acceleration of Exports of Goods and Services and the deceleration of Imports of Goods and Services.
In comparison with the third quarter of 2017, GDP increased 0.7% in real terms, 0.2 percentage points more than in the previous quarter. The contribution of net external demand to quarter-on-quarter GDP change rate shifted from negative to positive, as a result of a higher acceleration in Exports of Goods and Services than in Imports of Goods and Services. The contribution of domestic demand diminished in the fourth quarter, mainly due to the slowdown of private consumption.
In 2017, GDP recorded a real growth rate of 2.7%, following an increase of 1.5% in 2016. This acceleration was the result of a higher contribution of domestic demand, mostly due to the Investment behaviour, since the contribution of net external demand remained unchanged.