Portugal GDP Growth Improves As Estimated, Inflation Rises

(RTTNews) - Portugal's economic growth accelerated as initially estimated in the second quarter, while flash consumer price inflation increased in August, separate reports from Statistics Portugal showed on Friday.

Gross domestic product, or GDP, advanced 1.9 percent year-on-year in the June quarter, faster than the 1.7 percent rise in the March quarter. That was in line with the flash data published on July 30.

The negative contribution of net external demand to the annual GDP growth was less pronounced in the second quarter, reflecting the more pronounced slowdown in imports of goods and services than that observed in exports of goods and services, the agency said.

Meanwhile, the growth in domestic demand eased slightly to 3.6 percent from 3.7 percent, reflecting the slowdown in investment.

On a quarterly basis, the economy rebounded 0.6 percent in the second quarter, as estimated, following a 0.4 percent contraction in the first quarter.

Consumer price inflation in Portugal rose to 2.8 percent in August from 2.6 percent in July. The decline in energy prices eased to 0.2 percent from 1.1 percent, while inflation based on unprocessed food items accelerated to 7.0 percent from 6.1 percent.

On a monthly basis, consumer prices dropped 0.2 percent after falling 0.4 percent in July.

The EU measure of inflation held steady at 2.5 percent in August, flash data showed.