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%.
- 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.
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