The Portuguese economy accelerated in the second quarter of 2026, according to the flash estimate released by the Portuguese Statistics Office (INE), bringing annual economic growth closer to the Government's forecast.

Gross Domestic Product (GDP) grew by 2.5% year-on-year and by 0.8% compared with the previous quarter. This means that growth in the second quarter was twice the rate recorded in the euro area and 0.4 percentage points higher than that of the European Union as a whole.

Net external demand recovered compared with the previous quarter, with exports of goods and services growing more strongly than imports.

Compared with the first quarter of 2026, GDP increased by 0.8%, following growth of 0.1% in the first three months of the year. This result reflected a positive contribution from net external demand.

Domestic demand also continued to make a positive contribution to economic growth, with household consumption recording stronger growth.

This means that, even in the hypothetical scenario of zero GDP growth in the second half of the year, the Portuguese economy would still grow by 1.9% in 2026 as a whole, in line with the current forecasts of the Bank of Portugal and the OECD.

Should the quarterly forecasts of the Bank of Portugal and the European Commission materialise in the third and fourth quarters (between 0.4% and 0.5%, respectively), annual growth in 2026 could reach between 2.1% and 2.2%, close to the 2.3% forecast included in the 2026 State Budget.