Portugal’s economy grew 0.8% quarter-on-quarter in Q2 2026, accelerating from a 0.1% expansion in Q1, was driven by stronger net exports and household consumption. Exports increased 2.5% in Q2, up from 1.9% in Q1, while imports slowed sharply to 1.0% from 5.9%. Household consumption growth also accelerated to 1.0% from 0.5%. In contrast, fixed investment fell 1.9%, following a 2.9% increase in the previous quarter. The recovery follows a weak first quarter, when severe storms disrupted activity in central Portugal and a surge in energy prices linked to the conflict in Iran weighed on economic activity. Year-on-year GDP growth edged up to 2.5% from 2.4% in Q1. The government expects the economy to expand 2.0% in 2026, while the Bank of Portugal forecasts 1.8% growth, following a 1.9% expansion in 2025.