New signs Portuguese economy is holding up better than expected thanks to labour market and fall in CPI

portugal espana

Bankinter: Good data battery for the Portuguese economy. (i) CPI (Feb): +2.1% year-on-year against +2.3% previously; Underlying: +2.2% versus +2.4% previously. (ii) Unemployment rate (Jan): 6.5% compared to 6.6% previously. (iii) Final GDP (4Q 2023): +2.2% year-on-year against +2.2% preliminary and +1.9% in Q3; In the quarter: +0.8% quarter-on-quarter versus +0.8% preliminary and -0.2% in Q3.

Analysis: New signs of an economy that is holding up better than expected, supported by the labour market, while inflation is close to 2% year-on-year. It is returning to the slowdown trend, after the strong rebound in January. Of note is the moderation of food prices (0.8% month-on-month versus +3.1% before). On the growth side, final GDP confirms strength. Portugal closes 2023 with an average GDP growth of +2.3%. This figure is well above the European record. It is supported by resilient employment, which is reflected in the contribution of Private Consumption in the year (+1.6% year-on-year in 2023).

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.