Portugal’s economy continues to grow and converge with EU
Portugal’s economy is continuing to grow and converge with the strongest economies within the European Union according to the Ministry of Finance.
In 2018, Portugal’s GDP grew, in real terms, 2.1% (-0.7 p.p. on 2017), according to the latest figures published by the National Statistics Institute (INE).
And the ministry notes that the Portuguese economy has grown for 21 consecutive quarters and in the last two years has grown 0.3 p.p. above the Euro Zone, converging with its for two years on the trot and for the first time in 20 years.
In the fourth quarter of 2018, GDP growth stood at 1.7% like-for-like (-0.4% p.p.) and 0.4% in a row (+0.1% p.p. like for like).
Portugal’s growth continues to be accompanied by a growth in employment (110 jobs were created in 2018) and a fall in unemployment with 73,000 less jobless than in December 2017; an unemployment rate reduction of 1.4 p.p. on the same period).
A context of greater geopolitical uncertainty has had an impact of reduced growth in the main EU economies which has undermined overseas demand and therefore exports which nevertheless grew 5.3% in nominal terms.
Brussels has been slashing growth forecasts over fears of a ‘no-deal’ Brexit and slowing growth in China and worldwide as a whole.
The EU has been more cautious over Portugal’s growth forecasts setting it at 1.7%.