LISBON (Reuters) - Portugal's economy expanded 0.3 percent in April-June from the preceding three-month period, slightly higher than 0.2 percent in the flash estimate, but still far from levels needed to achieve an acceleration promised by the government for 2016.


The National Statistics Institute said that compared to the same period of 2015, the economy expanded 0.9 percent, also tad stronger than 0.8 percent reported initially on Aug. 12.


The quarter-on-quarter change is also marginally higher than 0.2 percent growth registered in the last three months of 2015 and the first three months of this year.


Domestic demand was weak despite the Socialist government's drive to reverse austerity measures imposed by the previous administration in the hope of lifting consumption, contributing 0.2 percentage points to quarterly growth after 0.6 points in the preceding quarter.


Exports, however, had a mild positive contribution after weighing on GDP in the previous quarter, INE said.


Last year, the economy grew 1.5 percent, marking an acceleration from 0.9 percent in 2014, which was the first year of growth after a long recession and debt crisis.

This year, the Socialist government expects the economy to grow 1.8 percent, although Brussels, the International Monetary Fund and many analysts project a slowdown to just around 1 percent and warn the country may require additional budget measures to meet its deficit goals.

(Reporting By Andrei Khalip)