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Macroeconomic outlook report: Portugal

Third quarter of 2018

During the third quarter of 2018, Portugal's GDP experienced a deceleration of 0.32 p.p., reaching a year-over-year growth rate of 2.08%, mainly due to the behavior of internal demand. In terms of the labor market, the unemployment rate decreased over the previous quarter to 6.77%, while the y/y growth of employment decelerated from 2Q18 to a 2.12% rate. The euro depreciated against the dollar, registering an average exchange rate of 1.16 $/€. Lastly, inflation stood at 1.40%.

Macroeconomic overview

    • During the third quarter of the year, the Portuguese economy decelerated compared to the previous quarter by 0.32 p.p. reaching a rate of 2.08%. This performance was explained mostly by the behavior of the domestic demand, which registered a deceleration of 0.26 p.p. compared to previous quarter, to 2.34%.
    • On the other hand, the year-over-year growth rate of exports backed up the deceleration in Portuguese GDP, decelerating its year-over-year growth in 4.14 p.p., reaching 2.91%, while imports decelerated in a slower way, by 4.05 p.p., reaching 3.41%.
    • In the labor market, the unemployment rate decreased by 0.23 p.p., registering a 6.77% rate, while the y/y growth rate of employment decreased in 0.04 p.p. compared to the second quarter of the year, to 2.12%.
    • The euro depreciated against the US dollar by 0.03 dollars per euro compared to the previous quarter, registering an average exchange rate of 1.16 $/€ during 3Q18.
    • Inflation stood at 1.40% in the third quarter of 2018, 0.41 p.p. higher than in the previous quarter as a result of the acceleration in fuel prices.

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

    © GMS Management Solutions, S.L., 2019. 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.