Friday March 10 2017
Portugal Inflation Rate Rises to 1.6% In February
INE | Joana Taborda | joana.taborda@tradingeconomics.com

Consumer prices in Portugal increased 1.6 percent year-on-year in February of 2017, following a 1.3 percent rise in January. The inflation rate accelerated for the third straight month to the highest since December of 2012 amid rising food cost and oil prices that boosted transport cost.

Year-on-year, prices rose faster for food and non-alcoholic beverages (2.4 percent compared to 1.3 percent in January); transport (5.9 percent compared to 5.4 percent); restaurants and hotels (1.9 percent from 1.6 percent) and recovered for miscellaneous goods and services (0.4 percent compared to -0.1 percent). In contrast, inflation slowed for housing and utilities (0.1 percent compared to 0.5 percent) and recreation and culture (0.8 percent compared to 1.4 percent). In addition, prices fell further for clothing and footwear (-1.8 percent compared to -0.7 percent). 

On a monthly basis, consumer prices edged down 0.2 percent, following a 0.6 percent drop in January. 

The harmonized index rose 1.6 percent year-on-year and fell 0.2 percent on the month. 




Wednesday March 01 2017
Portugal GDP Growth Confirmed At 0.6% In Q4
INE | Joana Taborda | joana.taborda@tradingeconomics.com

The Portuguese economy advanced 0.6 percent on quarter in the last three months of 2016, in line with preliminary estimates and slowing from an upwardly revised 0.9 percent expansion in the previous period. Domestic demand rebounded as household spending and investment accelerated while net trade dragged down on growth due to a surge in imports. Considering full 2016, the economy expanded 1.4 percent, below 1.6 percent in 2015.

Household spending increased 1.1 percent, following a 0.4 percent rise in Q3 and government spending recovered (0.3 percent from -0.6 percent). Gross fixed capital formation went up 4.6 percent, following a 0.2 percent gain in Q3: investment recovered for transport equipment (9.2 percent from -6.2 percent in Q3) and intellectual property products (2.8 percent from -2.4 percent in Q3) and jumped for construction (7.7 percent from 0.2 percent in Q3). Exports increased 2.5 percent, the same as in the previous period while imports surged 4.5 percent, following a 0.1 percent drop in Q3.  

Year-on-year, the economy expanded 2 percent, following an upwardly revised 1.7 percent increase in Q3 and higher than initial estimates of 1.9 percent. It is the highest growth rate since the second quarter of 2010, mainly due to a recovery in investment and rising household spending.

Considering full 2016, consumption slowed (1.9 percent from 2.2 percent), gross capital formation contracted (-0.9 percent from 4.6 percent) and both exports (4.4 percent from 6.1 percent) and imports (4.4 percent from 8.2 percent) rose at a slower pace. 




Tuesday February 14 2017
Portugal GDP Growth Betas Expectations In Q4
INE | Joana Taborda | joana.taborda@tradingeconomics.com

The Portuguese economy advanced 0.6 percent on quarter in the last three months of 2016, slowing from a 0.8 percent expansion in the previous period but beating market expectations of 0.5 percent. Domestic demand was the main contributor to growth, preliminary estimates showed.

Domestic demand made a positive contribution to growth in the last quarter of 2016 after dragging it down in the previous period, mainly boosted by investment. In contrast, net trade contributed negatively to growth mainly due to a jump in imports. 

Year-on-year, the economy advanced 1.9 percent, higher than 1.6 percent in the third quarter and beating market expectations of 1.6 percent. It is the highest growth rate since the last quarter of 2013 as investment recovered and household spending accelerated. On the other hand, imports rose faster than exports, bringing net trade contribution to negative.

Considering full 2016, the GDP expanded 1.4 percent, lower than 1.6 percent in 2015 but higher than government estimates of 1.2 percent and European Commission ones of 1.3 percent. 


Friday February 10 2017
Portuguese Inflation Rate Rises To Nearly 4-Year High
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portuguese consumer prices increased by 1.3 percent year-on-year in January 2017, following a 0.9 percent rise in December. It was the highest inflation rate since December 2012, mainly boosted by higher cost for food and transportation.

Year-on-year, prices of food and non-alcoholic beverages went up by 1.3 percent, following a 0.6 percent gain in December; and cost of transportation climbed 5.4 percent, the biggest rise since December 2011, after growing by 1.9 percent. Additional upward pressure came from: Housing and utilities (0.5 percent from 0.6 percent in December); restaurants and hotels (1.6 percent from 1.9 percent); and recreation and culture (1.4 percent from 0.9 percent). By contrast, cost fell for: Miscellaneous goods and services (-0.1 percent from 0.4 percent in December); clothing and footwear (-0.7 percent from -0.9 percent) and health (-0.5 percent from -0.8 percent).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.5 percent, the same as in the previous month.

On a monthly basis, consumer prices fell by 0.6 percent after showing no growth in December.

The harmonized consumer price index increased by 1.3 percent year-on-year and decreased by 0.7 percent from the previous month.


Wednesday January 11 2017
Portuguese Inflation Rate Rises To 0.9% YoY In December
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portuguese consumer prices went up by 0.9 percent year-on-year in December 2016, accelerating from a 0.6 percent rise in November but missing market expectations of a 1.4 percent gain. The increase was mainly boosted by a 10.7 percent rise in petrol prices while cost of clothing continued to fall.

Year-on-year, prices of transportation climbed 1.9 percent, the biggest rise since October 2012, mainly boosted by a 10.7 percent increase in petrol prices. Additional upward pressure came from: Food and non-alcoholic beverages (+0.6 percent from +0.5 percent in November); miscellaneous goods and services (+0.4 percent from a flat reading); housing and utilities (+0.6 percent from +0.3 percent); restaurants and hotels (+1.9 percent from +1.8 percent); and recreation and culture (+0.9 percent from +1.2 percent). By contrast, cost fell for clothing and footwear (-0.9 percent from -1.4 percent in November) and health (-0.8 percent from -0.6 percent).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.5 percent compared to 0.4 percent in the previous month.

On a monthly basis, consumer prices were unchanged, following a 0.5 percent drop last month and below market consensus of a 0.5 percent rise.

The harmonized consumer price index increased by 0.9 percent year-on-year and was flat from the previous month.

The average annual inflation figure was 0.6 percent in 2016 compared with 0.5 percent in 2015.


Tuesday December 13 2016
Portugal Inflation Rate Eases To 0.6% In November
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Portugal increased by 0.6 percent year-on-year in November of 2016, easing from a 0.9 percent growth in October. Prices increased at a slower pace for restaurants and hotels, transports and recreation and culture. In negative side, costs of clothing and health decreased.

Year-on-year, prices rose at a slower pace for restaurants and hotels (+1.8 percent compared to +4.2 percent); recreation and culture (+1.2 percent from +2.6 percent) and transports (+0.7 percent from +0.9 percent). Additional upward pressure came from: food and non-alcoholic beverages (0.5 percent, the same as in the previous month) and housing, water, electricity, gas and other fuels (+0.3 percent from +0.2 percent). In contrast, prices declined for clothing and footwear (-1.36 percent from -1.44 percent) and health (-0.62 percent from -0.60 percent).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.5 percent compared to 0.7 percent in the previous month.

On a monthly basis, consumer prices fell 0.5 percent, following a 0.3 percent gain last month.

The harmonized consumer price index increased by 0.5 percent year-on-year and declined -1.0 percent from the previous month.


Wednesday November 30 2016
Portuguese Q3 GDP Growth Confirmed at 3-Year High
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Portuguese economy expanded 0.8 percent on the quarter in the three months to September 2016, following a 0.3 percent growth in the previous period and matching the preliminary estimate. It was the highest growth rate since the last quarter of 2013, driven by a rise in exports and household consumption while fixed investment continued to contract, final figures showed.

It was the tenth consecutive period of expansion and the strongest in three years, mainly boosted by net external demand as exports of goods and services expanded 2 percent (+1.2 percent in Q2), while imports showed no growth (+2 percent in Q2). 

Meanwhile, domestic demand was unchanged from the previous period (+0.6 percent in Q2), as gross fixed capital formation contracted 1 percent (+0.3 percent in Q2), amid a drop in construction (-0.1 percent from -4.1 percent in Q2), intellectual property products (-2.9 percent from +2.1 percent in Q2) and transport equipment (-6.3 percent from +9.9 percent in Q2); and government spending fell 0.6 percent (+0.4 percent in Q2). By contrast, household consumption expanded 0.5 percent, recovering from a 0.1 percent decline in the second quarter.

On the production side, output grew mainly for: Wholesale and retail trade, repair of motor vehicles and motorcycles, accommodation and food service activities (+0.9 percent from +0.3 percent in Q2); financial, insurance and real estate activities (+0.2 percent from -0.4 percent in Q2); industry (+3 percent from +0.6 percent in Q2); and transportation and storage; information and communication (+2.1 percent from +0.1 percent in Q2). Meanwhile, output fell for other services activities (-1.3 percent from +0.8 percent in Q2) and construction (-1.1 percent from -3.4 percent in Q2).

Total employment advanced 1.3 percent, the biggest gain since the third quarter of 2014, following a 0.4 percent growth in the precedent period.

Year-on-year, the economy advanced 1.6 percent, after growing by 0.9 percent in each of the previous two quarters. It was the strongest reading in one year, driven by net exernal demand, as exports rose 5.4 percent (+1.8 percent in Q2) and imports advanced at a slower 1.6 percent (+0.9 percent in Q2). Domestic demand grew 0.9 percent, higher than 0.8 percent in the previous quarter, as households' spending expanded by 1.9 percent (+1.6 percent in Q2) and public expenditure increased by 0.5 percent (+0.7 percent in Q2) while fixed investment contracted 1.5 percent (-2.4 percent in Q2). 


Tuesday November 15 2016
Portugal GDP Growth Rate at 3-Year High of 0.8%
INE | Joana Taborda | joana.taborda@tradingeconomics.com

The Portuguese economy advanced 0.8 percent on quarter in the three months to September of 2016, up from a 0.3 percent increase in the previous period and beating market expectations of a 0.2 percent increase. It is the highest growth rate since the last three months of 2013, boosted by a rise in exports, preliminary estimates showed.

External demand accounted positively while internal demand weighed down on the growth.

Year-on-year, the economy expanded 1.6 percent, better than 0.9 percent in each of the previous two quarters and above expectations of 1 percent. It is the best annual growth in four quarters. Exports for both services and goods rose more than imports and private consumption accelerated.

The Portuguese government targets full year growth at 1.2 percent, down from earlier estimates of 1.8 percent but above European Commission forecasts of 0.9 percent. 


Thursday November 10 2016
Portugal Inflation Rate Hits 1-Year High in October
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Consumer prices in Portugal increased by 0.9 percent year-on-year in October 2016, accelerating from a 0.6 percent growth in September and in line with market expectations. It was the highest inflation rate since September last year, as transport prices rose for the first time in eleven months.

Year-on-year, prices of transportation climbed 0.9 percent, the first rise since November 2015, following a 0.3 percent drop in September. Additional upward pressure came from: Food and non-alcoholic beverages (+0.5 percent from +1 percent the previous month); miscellaneous goods and services (+0.1 percent from +0.4 percent); housing and utilities (+0.2 percent from -0.1 percent); restaurants and hotels (+4.2 percent from +3.4 percent); and recreation and culture (+2.6 percent from +0.8 percent). In contrast, cost fell for clothing and footwear (-1.4 percent from -0.8 percent in September) and health (-0.6 percent, the same as in the previous month).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.7 percent compared to 0.5 percent in the previous month.

On a monthly basis, consumer prices advanced 0.3 percent, following a 0.7 percent gain last month and above market consensus of 0.1 percent rise.

The harmonized consumer price index increased by 1.1 percent year-on-year and rose 0.2 percent from the previous month.


Wednesday November 09 2016
Portuguese Jobless Rate Falls to Nearly 7-Year Low in Q3
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portuguese unemployment rate declined to 10.5 percent in the third quarter of 2016 from 10.8 percent in the previous period. It was the lowest level since the last quarter of 2009, as the number of unemployed fell 1.8 percent while employment rose 1.3 percent. A year ago the unemployment rate was recorded at 11.9 percent.

The number of unemployed declined by 9.8 thousand, or 1.8 percent, to 549.5 thousand people. Unemployment decreased mostly for: men (-7.9 thousand); people aged 45 and over (-9 thousand) and aged 25 to 34 (-8.9 thousand); having completed the upper secondary and post-secondary non-tertiary education (-9.4 thousand); looking for a new job (-6.4 thousand), having been formerly in the services sector (-16.8 thousand); and seeking a job for 12 months or longer (-11.5 thousand).
Youth unemployment rate (aged 15 to 24) dropped to 26.1 percent from 26.9 percent in the previous three months and 30.8 percent a year earlier. The unemployment among young adults (aged 25 to 34) fell to 11.5 percent from 12.4 percent in the second quarter and 12.3 percent a year ago.

The number of employed people rose by 59 thousand, or 1.3 percent, to 4,661.5 thousand people, slowing from a 2 percent growth recorded in the second quarter. Employment increased mainly in services (+30.3 thousand), followed by industry (+15.7 thousand) and agriculture (+13 thousand).
The employment rate stood at 52.6 percent compared to 51.9 percent in the previous quarter and 51.6 percent in the same quarter of 2015.

The participation rate of the working age population stood at 58.8 percent compared to 58.3 percent in the previous quarter and 58.6 percent in the same quarter of 2015.

Year-on-year, the number of unemployed went down by 69.3 thousand people, or 11.2 percent, while the number of employed people rose by 86.2 thousand, or 1.9 percent.