Portuguese economy grew 11.9% in Q1

Portugal’s GDP in real terms grew 11.9% in Q1 like-for-like on 2021 according to Portugal’s national statistics institute INE. The economy grew 5.9% overall.

“The like-for-like increase partly reflects a data base effect in January and February 2021 when various measures were in place to offset the pandemic that was constraining economic activity”, states the INE.
Like-for-like growth exceeded the estimates from various analysts: ISEG forecast a quarterly growth of between 9.6% and 10%; Católica Lisbon Forecasting Lab (NECP) suggested 9.3%; the Forum for Competitiveness predicated growth of between 9% and 10.5%.
“The contribution of internal demand for the like-for-like variation on GDP increased in the 1st quarter, with an emphasis on higher growth in private consumption. The positive contribution of net external demand for the like-for-like variation in GDP also increased, with a contraction in the amount of imports of goods and services, and an increase in exports of goods and services reflecting the recovery of tourist activity.
“In the first quarter of 2022, the loss in terms of exchange was more accentuated than in the preceding three quarters as a result of pronounced growth of the imports deflator*”. (*A deflator serves as a price index in which the effects of inflation are nulled. It is the difference between real and nominal GDP).
According to the INE analysis “compared to the 4th quarter of 2021, GDP increased 2.6% in volume (a quarter-on-quarter growth of 1.7% on the previous quarter), showing a more positive contribution from internal demand for the quarter-on-quarter variation of GDP, partly motivated by increased private consumption, while the contribution of net external demand remained slightly positive”.