During the second quarter of 2021, the Portuguese economy recorded a strong recovery (+21.98 p.p.)  compared to the previous quarter, with the GDP registering a year-on-year rate of change of 16.24%. Regarding the labor market, the unemployment rate increased slightly up to 6.93%, while the y/y employment variation rate registered a notable 5.56 p.p. improvement compared to the previous quarter up to 4.28%. The euro remained stable against the dollar at an exchange rate equal to that of last quarter of 1.21 $/€. Finally, inflation took a 0.50 p.p. downturn to -0.07%.


Macroeconomic outlook report: Portugal 2Q21

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Macroeconomic overview

    • During the second quarter of the year, the Portuguese economy recovered with strength compared to the previous quarter, increasing by 21.98 p.p. the year-on-year rate of GDP to 16.24%. The improvement of the economic recovery in this period was mainly due to the advances in vaccination and the lifting of restrictions, which led to a rising confidence on behalf of the population.
    • Regarding the labor market, Portugal's unemployment rate stood at 6.93% in 2Q21, after increasing by 0.17 p.p. compared to the previous quarter. As for the employment growth rate, it registered a y/y variation rate of 4.28%, increasing by 5.56 p.p. compared to 1Q21 and recording its first positive rate in five quarters.
    • During the second quarter of 2021, the euro remained stable against the dollar, recording an average exchange rate equal to that of last quarter of 1.21$/€.
    • Inflation in Portugal decreased by 0.50 p.p. in the second quarter of 2021, down to a negative rate of -0.07%.

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