Portugal, which exited a multi-billion euro bailout scheme in May, returned to growth in the second quarter, avoiding recession in spite of a banking crisis. 

Portugal's gross domestic product grew by 0.3% between the months of April and July, the National Institute of Statistics (INE) said. 

The rebound "is mainly down to the progression of exports of goods and services," the INE said in a statement. 

The institute reduced its initial estimate of 0.6% growth in the second quarter. 

Portugal's economy shrank 0.5% in the first three months of 2014, slightly better than the 0.6% contraction the INE had reported initially. 

Year on year, Portuguese GDP grew 0.9% in the second quarter following a 1% increase in the first three months of 2014 compared to the previous year. 

Portugal narrowly avoided dipping back into recession - defined by two consecutive quarters of negative economic growth - after a prolonged period of contraction sparked by 2008's financial crisis. 

The government narrowly averted a national disaster in August by bailing out the stricken Banco Espirito Santo, one of Portugal's largest lenders, with help from the financial sector. 

Portugal was one of the euro zone countries which got into severe difficulties at the height of the euro zone debt crisis but which are now showing signs of recovery at the price of deep structural reforms and budget discipline.