During the third quarter of 2020, the fall of the year-on-year GDP growth rate in Portugal slowed down compared to the previous quarter and stood at a rate of -5.66%. Regarding the labor market, the unemployment rate increased up to 7.97%, while the y/y employment variation rate increased compared to the previous quarter up to -2.63%. The euro appreciated against the dollar, and the exchange rate stood at 1.17 $/€. Finally, inflation stood at 0.00% after increasing compared to the previous quarter.

 


Macroeconomic outlook report: Portugal 3Q20

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Macroeconomic overview

    • During the third quarter of the year, Portugal's GDP recorded a significant increase of 10.76 p.p. in its y/y variation rate compared to the previous quarter, up to a rate of -5.66%. This gradual recovery was due to the easing of the virus containment measures, which motivated domestic and external demand to partially recover compared to 2Q20.
    • Regarding the labor market, Portugal's unemployment rate stood at 7.97% in 3Q20, after increasing by 1.47 p.p. compared to the previous quarter. As for the employment growth rate, it registered a y/y variation rate of -2.63%, despite increasing by 0.90 p.p. compared to 2Q20.
    • During the third quarter of 2020, the euro appreciated against the dollar compared to the previous quarter, recording an average exchange rate of 1.17 $/€, after an increase of 0.07 dollars per euro.
    • Inflation in Portugal increased by 0.27 p.p. in the third quarter of 2020, up to a rate of 0.00%.

    For more information access the executive document in pdf (avalaible in Spanish and Portuguese).