Portuguese GDP growth slows in second quarter

Economic growth in Portugal slowed sharply in the second quarter as the contribution from net external demand turned slightly negative.

The rate of growth in the Mediterranean country's gross domestic product slowed from a 1.0% quarter-on-quarter clip over the three months to March to just 0.2% in the second quarter, according to INE.

Economists had penciled in a rise of 0.6%.

In comparison to a year ago, the economy expanded at a 2.8% pace, unchanged from the previous quarter.

According to INE, domestic demand remained strong thanks to higher investment on the back of rising inventories while gross fixed capital formation continued to grow.