During the second quarter of 2020, Portugal's GDP year-over-year growth rate decelerated compared to the previous quarter, down to -16.33%, thus following the world trend resulting from the global health crisis. With regard to the labor market the unemployment rate increased during the quarter up to 6.50%, while the year-over-year growth rate of employment decreased its growth rate with respect to the previous quarter, down to -3.53%. The euro remained constant against the dollar, recording an average exchange rate of 1.10 $/€. Lastly, inflation stood at -0.27% during 2Q20.

 


Macroeconomic outlook report: Portugal 2Q20

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Macroeconomic overview

    • During the second quarter of the year, the Portuguese economy decreased its y/y growth rate with respect to the previous quarter, down to a rate of -16.33%. This performance was due to the fall in internal and external demand due to the global health crisis.
    • Regarding the labor market, the unemployment rate stood at 6.50% in 2Q20, after increasing by 0.03 p.p. when compared to the previous quarter, while the y/y growth rate of employment creation stood at -3.53%, which was 3.03 p.p. lower than the growth rate recorded in 1Q20.
    • The euro remained constant against the dollar when compared to the previous quarter, recording an exchange rate of 1.10 $/€.
    • Inflation in Portugal stood at -0.27% in the second quarter of 2020, after a 0.68 p.p. decrease compared to the previous quarter.

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