During the fourth quarter of 2020, the recovery that started in the third quarter of the year slowed down, with GDP registering a year-on-year rate of change of -6.11%. Regarding the labor market, the unemployment rate decreased down to 7.13%, while the y/y employment variation rate increased compared to the previous quarter up to -0.61%. The euro appreciated against the dollar, and the exchange rate stood at 1.19 $/€. Finally, inflation stood at -0.17% after decreasing compared to the previous quarter.

 


Macroeconomic outlook report: Portugal 4Q20

Watch video

Macroeconomic overview

    • During the fourth quarter of the year, Portugal's economy increased the decline compared to the previous quarter, decreasing by 0.45 p.p. the year-on-year rate of GDP to -6.11%. The decline in activity during 4Q20 was mainly due to the new increase of covid-19 cases in the last months of the year, which negatively affected private consumption.
    • Regarding the labor market, Portugal's unemployment rate stood at 7.13% in 4Q20, after decreasing by 0.83 p.p. compared to the previous quarter. As for the employment growth rate, it registered a y/y variation rate of -0.61%, despite increasing by 1.91 p.p. compared to 3Q20.
    • During the fourth quarter of 2020, the euro appreciated against the dollar compared to the previous quarter, recording an average exchange rate of 1.19 $/€.
    • Inflation in Portugal decreased by 0.17 p.p. in the fourth quarter of 2020, down to a rate of -0.17%.

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