FX.co ★ Portuguese Economy Posts Surprise Contraction in Q1

In the first quarter of 2025, the Portuguese economy contracted by 0.5% compared to the previous quarter. This follows a downward revision of a 1.4% increase in the last three-month period and contradicts analysts' forecasts of a 0.4% growth, according to preliminary data. While net external demand had a negative impact, domestic demand remained unchanged — both elements had previously fueled economic growth. On an annual basis, the economy grew by 1.6%, showing a deceleration from the 2.8% growth recorded in the previous quarter.