LISBON, Jan. 30 (Xinhua) -- Portugal's economy recorded growth of 1.9 percent in 2025, according to statistics released on Friday by the Portuguese National Statistics Institute (INE).
The result came slightly below the two percent forecast outlined by the government in the 2026 State Budget and by the Bank of Portugal, and marked a slowdown from the 2.1 percent growth registered in 2024.
This represented the third consecutive year of economic deceleration, with external trade weighing on overall performance. Net external demand made a more negative contribution in 2025, as export volumes slowed more sharply than imports, partly due to reduced transactions in petroleum products, said INE.
The INE identified domestic demand as the main driver of growth, highlighting an acceleration in private consumption and investment despite a slowdown in gross fixed capital formation.
In the fourth quarter, gross domestic product in volume terms grew by 1.9 percent year-on-year and 0.8 percent quarter-on-quarter.
Portugal's economic performance reflects broader growth challenges across Europe, amid global trade uncertainties and moderate consumer spending patterns affecting eurozone economies, according to analysts. ■