Economic news

Portugal economy grows 6.7% in 2022, but slowing down

2023.02.28 07:48


© Reuters. FILE PHOTO: People are seen in a shopping mall on the first day of the opening of malls after a country lockdown, amid the coronavirus disease (COVID-19) pandemic, in Sintra, Portugal, April 19, 2021. REUTERS/Pedro Nunes

LISBON (Reuters) – Portugal’s economy grew 6.7% in 2022, its strongest pace in 35 years, fuelled by domestic demand and booming tourism, but inflation put the brakes on private consumption in the fourth quarter, presaging a sharp slowdown this year.

In its second reading of gross domestic product released on Tuesday, the National Statistics Institute (INE) revised fourth-quarter growth slightly higher yet kept the annual figure unchanged.

It said the economy grew 0.3% in the last quarter of 2022, up from 0.2% estimated a month ago and the same as in the third quarter. Year-on-year growth reached 3.2%, up from its flash estimate of 3.1%.

However, INE said the contribution of domestic demand to year-on-year GDP was only 1.9 percentage points (pp) after 3.2 pp in the previous quarter, while external demand contributed with 1.1 pp compared to 1.6 pp in the third quarter.

Hit by high inflation, private consumption – which represents two-thirds of GDP – grew just 2.7% between October and December compared to 4.3% in the previous three months.

Quarter-on-quarter, household consumption expenditures decreased by 0.5% despite high inflation, while they had grown by 1.1% in the previous quarter.

Portuguese consumer prices rose 8.2% year-on-year in February in a slowdown from 8.4% reported in the previous month, flash data from INE showed on Tuesday.

Still, core inflation, which strips out volatile food and energy prices, accelerated to 7.2% from 7.0% in January.

The INE said investment fell 1.2% year-on-year in the fourth quarter after a 1.6% increase in the July-September period, while exports growth halved to 8.1% year-on-year from the previous three months’ 16.3% despite the key tourism sector’s recovery to near pre-pandemic levels.

The government projects expansion to slow to just 1.3% in 2023, with private consumption almost stagnating as families struggle with high energy and food prices alongside rising interest rates and slowing exports.

Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 96,848.95 2.03%
ethereum
Ethereum (ETH) $ 3,299.51 4.88%
tether
Tether (USDT) $ 1.00 0.11%
solana
Solana (SOL) $ 245.64 5.94%
bnb
BNB (BNB) $ 645.37 4.26%
xrp
XRP (XRP) $ 1.35 13.87%
dogecoin
Dogecoin (DOGE) $ 0.409168 12.10%
usd-coin
USDC (USDC) $ 0.999454 0.17%
cardano
Cardano (ADA) $ 0.980725 11.59%
staked-ether
Lido Staked Ether (STETH) $ 3,301.87 4.69%
tron
TRON (TRX) $ 0.20328 8.50%
avalanche-2
Avalanche (AVAX) $ 39.66 7.38%
stellar
Stellar (XLM) $ 0.50839 10.41%
the-open-network
Toncoin (TON) $ 5.95 2.13%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 10.34%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,930.31 3.99%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 96,565.87 1.53%
polkadot
Polkadot (DOT) $ 8.59 5.00%
chainlink
Chainlink (LINK) $ 16.52 5.70%
bitcoin-cash
Bitcoin Cash (BCH) $ 487.71 10.00%
weth
WETH (WETH) $ 3,297.03 4.89%
sui
Sui (SUI) $ 3.25 10.44%
pepe
Pepe (PEPE) $ 0.000019 11.66%
leo-token
LEO Token (LEO) $ 8.71 0.92%
near
NEAR Protocol (NEAR) $ 6.25 2.13%
litecoin
Litecoin (LTC) $ 94.04 8.79%
aptos
Aptos (APT) $ 11.82 8.76%
uniswap
Uniswap (UNI) $ 10.34 4.06%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,491.15 3.88%
hedera-hashgraph
Hedera (HBAR) $ 0.140704 6.79%
usds
USDS (USDS) $ 1.00 0.08%
internet-computer
Internet Computer (ICP) $ 10.68 7.92%
crypto-com-chain
Cronos (CRO) $ 0.184032 9.63%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.537201 6.85%
ethereum-classic
Ethereum Classic (ETC) $ 27.72 9.67%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.20%
render-token
Render (RENDER) $ 7.38 7.48%
kaspa
Kaspa (KAS) $ 0.147474 8.41%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 0.47%
bittensor
Bittensor (TAO) $ 495.29 8.56%
whitebit
WhiteBIT Coin (WBT) $ 24.40 1.22%
dai
Dai (DAI) $ 0.999886 0.19%
celestia
Celestia (TIA) $ 7.90 22.86%
arbitrum
Arbitrum (ARB) $ 0.813741 6.79%
bonk
Bonk (BONK) $ 0.000044 14.34%
mantra-dao
MANTRA (OM) $ 3.66 3.82%
cosmos
Cosmos Hub (ATOM) $ 8.36 2.04%
vechain
VeChain (VET) $ 0.040189 8.61%
filecoin
Filecoin (FIL) $ 5.35 0.88%
okb
OKB (OKB) $ 52.51 2.30%