Economic activity grew less than expected in Q2 2024
GDP performed worse than expected by the BPI Research in Q2 24, advancing by only 0,1% qoq; on a year-on-year basis, growth stabilized at 1,5% yoy. According to the statistical office, the deceleration on the quarterly growth reflects the moderation of private consumption and the worse contribute of exports. Despite this, investment behaved positively, but the contribution of net external demand returned to negative territory, with exports of goods and services stagnating. Going forward, private consumption continues to be supported by a resilient labour market and recovery of income, and investment should be stimulated by lower interest rates and the implementation of European funds. Risks to our current forecast are balanced. After the release of Q1 data, the BPI Research sees GDP expanding around 1,7% in 2024.