Portugal’s public deficit shrank by more than 25 percent year-on-year in the first half of 2016 thanks to the country’s economic growth, the Portuguese Ministry of Finance announced this week.

The deficit of the European nation totalled 2.87 billion euros (US$3.15 billion) in the first six months of this year, down by 971.2 million euros from the prior-year period. Revenues rose by 2.9 percent year-on-year while spending was practically unchanged, according to the statement.

“The deficit improvement in the first half by far exceeds the numbers estimated in the 2016 budget. The economy and the labour market have shown signs that underpin the favourable evolution of tax and revenues,” the Portuguese Ministry said in the note.

The Portuguese Government expects its economy to grow by 1.8 percent this year but most economists expect growth to remain around 1 percent, news agency Reuters reported.