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Macroeconomic outlook report: Portugal

Fourth quarter of 2017

During the fourth quarter of 2017, Portugal's GDP maintained its year-over-year growth rate with respect to the previous quarter, at 2.40%. The year-over-year growth rate of domestic demand fell to 2.30%. Regarding the labor market, the year-over-year growth rate of employment increased with respect to the third quarter of the year, reaching 3.20%, while the unemployment rate fell to 8.17%. The euro appreciated against the dollar, registering an exchange rate of 1.18 $/€. Finally, inflation stood at 1.47%.

Macroeconomic overview

    • During the fourth quarter of the year, the Portuguese economy maintained its year-over-year growth rate stable with respect to the previous quarter, at 2.40%. This behavior was driven by the evolution of external demand, which was offset by lower growth in domestic demand. In annual terms, the Portuguese GDP showed a year-over-year growth rate of 2.68% in 2017.
    • On the other hand, the year-over-year growth rate of domestic demand fell by 1.10 p.p. when compared to the third quarter of the year, to 2.30%, driven by the deceleration in both private and public consumption, as well as by the deceleration of gross capital formation.
    • Regarding the labor market, the year-over-year growth rate of employment increased when compared to the third quarter of the year, to 3.20%, while the unemployment rate fell by 0.56 p.p., standing at 8.17%.
    • The euro appreciated against the US dollar by 0.01 dollars per euro compared to the previous quarter, registering an exchange rate of 1.18 $/€. This appreciation was due to the European economic situation, based on sustained growth, low inflation and the behavior of the foreign sector.
    • Inflation stood at 1.47% in the fourth quarter of 2017, 0.33 p.p. above the rate registered in the previous quarter, recovering the upward trend interrupted in the third quarter of the year.

    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.