During the first quarter of 2022, the Portuguese economy recorded a strong acceleration in its economic recovery, with GDP showing a year-on-year rate of change of 11.86%. On the labour market, the unemployment rate declined to 5.77%, while the year-on-year employment growth rate increased from the previous quarter to 4.43%. The euro depreciated against the US dollar to an exchange rate of 1.12 $/€. Finally, inflation stood at 4.97%, after increasing from the previous quarter.

Macroeconomic outlook report: Portugal 1Q22

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Macroeconomic overview

    • During the first quarter of the year, the Portuguese economy accelerated its growth rate compared to the previous quarter, increasing the GDP growth rate by 6.05 p.p. to 11.86%. The consolidation of the economic recovery in this period was driven by the remarkable growth of domestic demand, especially private consumption and exports.
    • With regards to the labour market, Portugal's unemployment rate stood at 5.77% in 1Q22, 0.43 p.p. lower than in the previous quarter. As for the pace of job creation, it increased by 2.55 p.p. to register a year-on-year growth of 4.43%.
    • During the first quarter of 2022, the euro depreciated against the dollar compared to the previous quarter, recording an average exchange rate of 1.12 $/€, and decreasing by 0.02 dollars per euro.
    • Inflation in Portugal increased by 2.56 p.p. in the first quarter of 2022, up to a rate of 4.97%.

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