Gross Domestic Product (GDP) grew 1.6% in the first three months of the year compared to the last quarter of 2022. The Portuguese economy grew 2.5% year-on-year, the National Statistics Institute (INE) said on Friday. Exports are the reasons for the good performance.

"The contribution of domestic demand to the year-on-year change in GDP remained positive in the first quarter, but lower than in the previous quarter, as a result of the deceleration of private consumption and the reduction of investment, with an acceleration of exports of goods and services and a slowdown in imports of goods and services. As a result, the positive contribution of net external demand was greater than that registered in the previous quarter," the INE said.