FX.co ★ Portugal’s Economy Accelerates in Q4 Despite Weak Domestic Demand

Portugal's economy witnessed a 0.8% growth in the fourth quarter of 2025 compared to the previous quarter. This growth rate, which was an acceleration from a revised 0.7% in the third quarter, exceeded market expectations of 0.5%, as per preliminary estimates. This period marked the fastest quarterly growth in a year, bolstered by net external demand amidst a notable reduction in imports of goods and services, especially crude oil. In contrast, domestic demand hampered growth due to a decline in investments and a deceleration in household consumption. On an annual comparison, the economy expanded by 1.9% in the fourth quarter, a decrease from 2.3% in the third quarter. For the entirety of 2025, Portugal's GDP grew by 1.9%, marginally lower than the 2.1% recorded in 2024.