In 2019, the Portuguese Gross Domestic Product (GDP) increased by 2.2% in real terms, 0.4 percentage points less than in 2018. Net external demand recorded a contribution of -0.6 percentage points to real GDP growth (-0.4 percentage points in 2018). The contribution of domestic demand decreased to 2.7 percentage points (3.1 percentage points in 2018), reflecting the less intense growth of private consumption. In nominal terms, GDP increased by 3.9% (4.3% in 2018), reaching 212.3 billion euros, whereas the External Balance of Goods and Services represented 0.1% of GDP (0.4% in 2018).
In the fourth quarter of 2019, GDP registered a year-on-year growth rate of 2.2% in volume (0.3 percentage points higher than in the previous quarter). The contribution of net external demand to GDP year-on-year rate of change shifted from -1.5 percentage points in the third quarter to +1.3 percentage points, reflecting a noticeable acceleration of Exports of Goods and Services and a less intense growth of Imports of Goods and Services. Domestic demand presented a contribution of 0.9 percentage points (3.4 percentage points in the previous quarter), as private consumption decelerated and Investment diminished, as a result of the evolution of Changes in Inventories.
In comparison with the third quarter of 2019, GDP increased by 0.7% in real terms (0.3% in the precedent quarter), as a result of the 1.7 percentage points contribution of net external demand to GDP quarter-on-quarter rate of change (-1.1 percentage points in the previous quarter), while domestic demand recorded a contribution of -1.0 percentage points (1.5 percentage points in the third quarter).