The National Institute of Statistics revised this Monday the calculation formula of the Gross Domestic Product (GDP) and the incorporation of new information led to a significant revision of economic growth in the last two years. According to INE, the Portuguese economy grew, after all, 2.4% in 2018, three tenths more than previously disclosed. In 2017, economic growth was revised even more significantly, from 2.8% to 3.5%.
Unlike previous revisions, INE did not make a thorough revision of the way it calculates GDP, as happened in 2011 to include areas of the economy that were not yet accounted for in the Gross Domestic Product. However, the additional information included in the accounts led to profound changes in the accounts for 2017, 2018 and may have substantial implications for the accounts for 2019.
Regarding the GDP for 2017, in the new accounts made available this Monday by the National Institute of Statistics indicate that the GDP after all did not grow 2.8% (a figure that already represented an upward revision), but 3.5%, 0.7 percentage points more than previously estimated.
This revision is mainly due to an upward revision of investment in 2017, which instead of 9.2% it grew by 11.9%, plus 2.7 percentage points, and also of exports, which ended this year growing by 8.4% (plus 0.6 percentage points).
In the end, nominal GDP (growth in volume, plus the effect of price variation) was revised upwards by 1,333.7 million euros.