Portuguese economy expands in Q2 but weaker than expected

The Portuguese gross domestic product (GDP) expanded 0.4 percent in the second quarter, below the forecast 0.5 percent by analysts.

The economy grew 1.5 percent in the second quarter year on year, while economists surveyed by Bloomberg expected the economy would grow 1.6 percent.

The statistics released on Friday by the country's national institute of statistics show that the economy has been growing for five consecutive quarters, and that growth has been positive year on year since the first quarter of 2013.

However trade union CGTP said on Friday in a statement sent to Xinhua that the figures were below the Bank of Portugal's of expectations, which had forecast 1.7 percent growth, and reflected a "scarce economic recovery."

Portugal is recovering from a recession that forced the country to sign a 78-billion-euro (about 87 billion U.S. dollars) bailout in 2011, and the conditions that came with the deal led the country's center-right ruling coalition to enforce harsh spending cuts and tax hikes to meet budget targets.

As Portugal faces elections in October, Prime Minister Pedro Passos Coelho has been insisting that the country's austerity measures have paid off and that more cuts are vital to put the economy back on track. Endit