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Macroeconomic outlook report: Portugal

First quarter of 2018

During the first quarter of 2018, Portugal's GDP experienced a deceleration of 0.29 p.p., reaching a year-over-year growth rate of 2.13%, due to the behavior of external demand. In terms of the labor market, the unemployment rate decreased over the quarter, while the y/y growth of employment decelerated from 4Q17 to a 3.14% rate. The euro appreciated against the dollar, registering an exchange rate of 1.23 $/€. Lastly, inflation stood at 0.77%.

Macroeconomic overview

    • During the first quarter of the year, the Portuguese economy decelerated compared to the previous quarter by 0.29 p.p. until reaching a rate of 2.13%. This performance was explained by the behavior of exports of goods and services, which slowed their year-on-year growth.
    • On the other hand, the year-on-year growth rate of domestic demand accelerated by 0.13 p.p. compared to the fourth quarter of the year, up to 2.54%, due to the acceleration of both private and public consumption, as well as the acceleration of gross capital formation, reaching a rate of 6.71%.
    • In the labor market, the unemployment rate decreased in 0.50 p.p., registering a 7.67% rate, while the y/y growth rate of employment decreased in 0.06 p.p. compared to the fourth quarter of the year, to 3.14%.
    • The euro appreciated against the US dollar by 0.05 dollars per euro compared to the previous quarter, registering an exchange rate of 1.23 $/€. This appreciation was due to the situation of the European economic situation, based on sustained growth, low inflation and the behavior of the foreign sector.
    • Inflation stood at 0.77% in the first quarter of 2018, 0.70 p.p. below the rate recorded in the previous quarter, as a result of the lower increase in the prices of non-durable goods and transport, which offset the rise in prices in communications, housing and energy.

    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.