Macroeconomic outlook report: Portugal

Second quarter of 2022

During the second quarter of 2022, the Portuguese economy recorded a slowdown in its economic recovery, with GDP showing a year-on-year rate of change of 7.10%. On the labour market, the unemployment rate increased to 5.97%, while the year-on-year employment growth rate declined from the previous quarter to -1.37%. The euro depreciated against the US dollar to an exchange rate of 1.07 $/€. Finally, inflation stood at 7.97%, after increasing from the previous quarter.

Macroeconomic outlook report: Portugal 2Q22

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Macroeconomic overview

    • During the second quarter of the year, the Portuguese economy decelerated its growth rate compared to the previous quarter, with GDP growth slowing down by 4.76 p.p. to 7.10%. A sharp fall in private consumption and gross capital formation contributed to the slowdown in the economy.
    • Regarding the labour market, Portugal's unemployment rate stood at 5.97% in 2Q22, after increasing by 0.20 p.p. from the previous quarter. As for the pace of job creation, it declined by 5.80 p.p. to register a year-on-year growth of -1.37%.
    • During the second quarter of 2022, the euro depreciated against the dollar compared with the previous quarter. Thus, the average exchange rate stood at 1.07 $/€, after decreasing by 0.05 dollars per euro.
    • Inflation in Portugal increased by 3.00 p.p. in the second quarter of 2022 to 7.97%.

    For more information, access the Macroeconomic Outlook Report of Portugal 2Q22 (avalaible in Spanish and Portuguese).