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Macroeconomic outlook report: Portugal

Second quarter of 2017

In the second quarter of 2017, Portuguese GDP expanded at a 3% y/y growth rate, after increasing its growth by 0.2 p.p. when compared to the previous quarter. Higher GDP growth in this quarter is driven by the acceleration in the growth rate of net exports, as well as of domestic demand. As for the labour market, the unemployment rate decreased by 0.60 p.p. to 9.33%. The y/y growth rate of employment, on the other hand, increased by 0.32 p.p. compared with 1Q17 to 3.57%. The euro appreciated against the US dollar by 0.04 $/€ with respect to 1Q17, to an average exchange rate of 1.10 $/€ during the second quarter, while inflation stabilized at a 1.45% rate.

Macroeconomic overview

    • During the second quarter of 2017, Portuguese GDP increased its y/y growth with respect to the previous quarter by 0.2 p.p. to 3%. The acceleration of net exports during this period, as well as of domestic demand, explain higher GDP growth in this quarter.
    • Domestic demand registered stronger growth during this quarter, recording a 0.1 p.p. increase to a 2.8% y/y growth rate. This behaviour was driven by the higher growth rate of gross capital formation, while public and private consumption recorded decelerations with respect to 1Q17.
    • Regarding the labour market, the unemployment rate in 2Q17 decreased to 9.33%, which represents a quarterly reduction of 0.60 p.p. On the other hand, the y/y growth rate of employment increased by 0.32 p.p. compared to 1Q17, standing at 3.57%.
    • The euro appreciated against the US dollar after the results of the French presidential elections. Thus, the exchange rate increased by 0.04 $/€ over the previous quarter, standing at 1.10 $/€ in the second quarter of the year.
    • In the second quarter of 2017, inflation in Portugal stood at 1.45%, 0.03 p.p. higher than during the first quarter of 2017, thus continuing the upward trend which began in 2016. Hospitality, leisure and communications prices recorded the highest increases during 2Q17.

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

    © GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.