Portugal’s economy expanded faster than predicted in 2024, with a 1.5% increase in the fourth quarter, bringing the annual growth rate to 1.9%, exceeding the government’s 1.8% prediction, according to official figures issued on Thursday.
The National Statistics Institute (INE) revealed that the country’s GDP increased by 2.7% in the fourth quarter compared to the same time in 2023. This represented a substantial improvement above the prior quarter’s revised 0.3% growth rate.
INE attributed the acceleration to an increase in private consumption, aided by tax cuts, growing earnings, and higher pensions. Private spending, which has usually accounted for two-thirds of GDP, has played an important role in fuelling economic growth.
Despite robust domestic demand, exports of goods and services, notably Portugal’s thriving tourism sector, had a negative impact since rising imports outpaced export growth.
Economic expert Filipe Garcia stated that employment climbed by 1.5% in 2024, with the overall workforce expanding by an astonishing 25% since 2013. He also stated that immigration remains an important aspect of Portugal’s economic performance, warning that recent government curbs on immigrants must be carefully considered.
The government anticipates economic growth to accelerate to 2.1% by 2025.
