LISBON, Dec 7: Portugal GDP growth accelerated to 1.5 per cent year-on-year in the third quarter on the back of higher exports to its European partners, the National Statistics Institute said on Thursday.

However, GDP, which measures total economic activity within Portugal’s borders, fell 0.2 per cent in comparison to the previous quarter, hit by a rise in imports and lower spending from the construction sector.

Year-on-year growth in the second quarter was 0.8 per cent and quarter on quarter growth was 0.9pc, the institute said.

“Exports of goods and services maintained a strong growth compared to the previous quarter,” the institute said in a statement, “But higher imports hampered Portugal’s third quarter GDP growth when compared to the previous quarter,” said an analyst at bank BPI.—Reuters