Portugal: Economy grows 1.9 percent in 2007

11 March 2008

Lisbon, Portugal, 11 March – Portugal’s economy grew by 1.9 percent last year compared to the 1.3 percent registered in 2006, the National Statistics Institute (INE) said Monday.

GDP totaled 162.9 billion euros in 2007, up 4.9 percent in comparison to the previous year. Portugal’s economic growth in 2007 was “strongly influenced by domestic demand, above all due to recovery of investment”, which increased by 3.2 percent after falling 0.8 percent in 2006, the INE said.

Gross Fixed Assets Capital Formation-Equipment was the component contributing most to investment evolution, climbing to 6.9 percent in 2007 from 1.4 percent in 2006.

Domestic demand of 1.8 percent showed a sixfold increase from 2006, while external demand in 2007 only contributed 0.1 percent, or a tenth of the value for 2006.

In the final quarter of 2007 GDP rose 2 percent compared to the same period in 2006, an increase of 1.7 percent over the previous quarter last year. (macauhub)