Portugal's economy returned to growth in 2014 with an expansion of 0.9%, after contracting by 1.4% the year before, the country's national statistics office Ine said today.
It was the first full-year of economic growth in Portugal since 2010.
Prime Minister Pedro Passos Coelho's centre-right government, which faces a general election at the end of the year, and the European Commission had predicted the Portuguese economy would expand by 1% last year.
Portuguese economic growth accelerated at the end of 2014, expanding 0.5% in the fourth quarter after growing by 0.3% in the previous three months.
The improvement in economic activity was due to "a recovery in household consumption and, to a lesser extent, investments," the statistics office said in a statement.
The figures from the statistics office confirmed provisional figures for the period published on February 13.
Portugal in May exited a three-year, €78 billion bailout programme from the European Union and International Monetary Fund but the government still has to cut spending to meet budget targets.
It forecasts GDP will grow by 1.5% in 2015 while unemployment will decline to 13.4%.