Portugal’s economy expanded by 0.8% quarter-on-quarter in Q2 2026, up from 0.1% in Q1, driven by stronger net exports and household consumption. Exports rose 2.5% in Q2, compared with 1.9% in Q1, while import growth decelerated sharply to 1.0% from 5.9%. Household consumption growth also picked up, advancing 1.0% after a 0.5% increase in the previous quarter. In contrast, fixed investment declined by 1.9%, following a 2.9% gain in Q1.
The rebound comes after a weak first quarter, when severe storms in central Portugal disrupted activity and a spike in energy prices linked to the conflict in Iran weighed on growth. On a year-on-year basis, GDP growth inched up to 2.5% in Q2 from 2.4% in Q1. For 2026 as a whole, the government forecasts GDP growth of 2.0%, while the Bank of Portugal projects a 1.8% expansion, after growth of 1.9% in 2025.
