National economy grows 2.5% year-on-year but CIP/ISEG barometer signals slight slowdown

The Portuguese economy is projected to grow by 2.5% year-on-year, with a slight slowdown indicated by the CIP/ISEG barometer. The GDP is expected to rise by 0.3% in the third quarter compared to the previous quarter, reflecting a 2.5% increase year-on-year. Concerns arise from a significant decline in industrial production, particularly in the automotive sector. The CIP warns of potential risks for economic activity next year, citing challenges in achieving the proposed private investment growth of over 10%. The barometer also anticipates a slowdown in private consumption due to rising fuel prices and financing costs, although investment indicators may recover due to the final phase of the Recovery and Resilience Plan. The GDP is estimated to grow by 2.3% in 2026, with a range between 2.2% and 2.4%.