During the fourth quarter of 2021, the Portuguese economy consolidated its recovery, with GDP registering a year-on-year rate of change of 5.81%. Regarding the labor market, the unemployment rate decreased down to 6.20%, while the y/y employment variation rate decreased compared to the previous quarter down to 1.88%. The euro depreciated against the dollar, and the exchange rate stood at 1.14 $/€. Finally, inflation stood at 2.38% after increasing compared to the previous quarter.

Macroeconomic outlook report: Portugal 4Q21

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Macroeconomic overview

    • During the fourth quarter of the year, the Portuguese economy accelerated its pace growth from the previous quarter, increasing by 1.65 p.p. the year-on-year rate of GDP, while standing at 5.81%. The consolidation of the economic recovery in this period was driven by the remarkable growth of domestic demand and exports, especially in the services sector.
    • Regarding the labor market, Portugal's unemployment rate stood at 6.20% in 4Q21, after decreasing by 0.23 p.p. compared to the previous quarter. As for the employment growth rate, it registered a y/y variation rate of 1.88%, decreasing by 1.90 p.p. compared to 3Q21.
    • During the fourth quarter of 2021, the euro depreciated against the dollar compared to the previous quarter, recording an average exchange rate of 1.14 $/€, and decreasing by 0.04 dollars per euro.
    • Inflation in Portugal increased by 1.15 p.p. in the fourth quarter of 2021, up to a rate of 2.38%.

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