FX.co ★ Portugal GDP Growth Revised Up in Q4

The Portuguese economy grew 0.9% quarter-on-quarter in Q4 2025, its strongest performance in a year, beating the initial estimate of 0.8% and accelerating from a downwardly revised 0.6% in Q3. Net external demand made a positive contribution to growth (+1.1 percentage points, after -0.9 percentage points in Q3), as both exports and imports of goods and services declined, with imports falling more sharply. By contrast, domestic demand subtracted 0.2 percentage points from growth (after contributing +1.5 percentage points in the previous quarter), reflecting a drop in investment and a slowdown in final consumption expenditure.

On an annual basis, GDP increased 1.9% in Q4 from a year earlier, down from a downwardly revised 2.2% in Q3 but in line with the flash estimate. For the full year 2025, Portuguese GDP grew 1.9%, compared with 2.2% in 2024. Growth over the year was supported by domestic demand, underpinned by stronger final consumption, while net external demand weighed more heavily on activity, as exports of goods and services decelerated more markedly than imports.