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.  




Wednesday October 12 2016
Portugal Inflation Rate Slows to 0.6% YoY in September
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Consumer prices in Portugal increased by 0.6 percent year-on-year in September 2016, easing slightly from a seven-month high of 0.7 percent in August and missing market expectations of 0.8 percent growth. Cost of food rose at a slower pace while a drop in housing prices dragged inflation down. On a monthly basis, consumer prices rose sharply by 0.7 percent after falling by 0.2 percent in August.

Year-on-year, prices of food and non-alcoholic beverages rose by 1 percent, slowing from a 1.8 percent growth in the previous month. Additional upward pressure came from: Miscellaneous goods and services (+0.4 percent); restaurants and hotels (+3.4 percent); and recreation and culture (+0.8 percent). In contrast, cost of housing and utilities dropped 0.1 percent (+0.3 percent in August). Prices also fell for transportation (-0.3 percent) and clothing and footwear (-0.8 percent).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.5 percent compared to 0.6 percent in the previous month.

On a monthly basis, consumer prices advanced 0.7 percent, following a 0.2 percent drop last month, as cost of clothing and footwear jumped 22.1 percent.

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


Monday September 12 2016
Portuguese Inflation Rate Rises to 7-Month High
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Consumer prices in Portugal increased by 0.7 percent year-on-year in August 2016, following a 0.6 percent growth in the previous month. It was the highest inflation rate since January this year, as prices rose further for restaurants and hotels, housing and food.

Year-on-year, prices of restaurants and hotels rose by 3.3 percent accelerating from a 2.6 percent growth in July; and cost of housing and utilities grew 0.3 percent, compared to a 0.1 percent rise in the previous month; and prices of food and non-alcoholic beverages went up 1.8 percent, the biggest gain since September last year. Additional upward pressure came from: Miscellaneous goods and services (+0.4 percent); and clothing and footwear (+0.8 percent). In contrast, cost fell for transportation (-1.3 percent) and recreation and culture (-0.3 percent).

The annual core inflation rate, which excludes energy and unprocessed food products components, was recorded at 0.6 percent compared to 0.8 percent in the previous month.

On a monthly basis, consumer prices fell 0.2 percent, following a 0.7 percent drop last month. While cost of clothing and footwear declined 6.5 percent, prices of restaurants and hotels climbed 1.5 percent.

The harmonized consumer price index increased by 0.8 percent year-on-year and was unchanged from the previous month.


Wednesday August 31 2016
Portuguese Q2 GDP Growth Revised Up to 0.3%
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Portuguese economy expanded 0.3 percent on the quarter in the three months to June 2016, compared to a 0.2 percent growth in the previous period and beating preliminary estimates of 0.2 percent. It was the biggest gain since the second quarter of 2015, mainly driven by net external demand, while household consumption expanded at a slower pace and fixed investment continued to contract, final figures showed. Compared to the same period of 2015, the GDP expanded 0.9 percent, the same as in the previous quarter and better than previous estimates of 0.8 percent.

It was the eight consecutive period of expansion and the strongest in one year, mainly boosted by net external demand as exports of goods and services expanded 1.3 percent (+0.1 percent in Q1), while imports advanced at a slower 1.1 percent (+1 percent in Q1). 

Meanwhile, domestic demand expanded slightly by 0.2 percent (+0.6 percent in Q1), due to a sharp slowdown in household consumption growth (+0.1 percent from +1 percent in Q1) while government spending advanced at the same pace as in the previous period (+0.3 percent). In contrast, gross fixed capital formation contracted 0.1 percent (-0.7 percent in Q1), as construction dropped 2.6 percent while machinery grew 1.7 percent.

Total employment advanced 0.6 percent, after showing no growth in the precedent quarter.

Year-on-year, the economy advanced 0.9 percent, the same pace as in the previous quarter. Domestic demand grew 1.3 percent, lower than 2.2 percent in the previous quarter, as households' spending expanded by 1.7 percent (+2.6 percent in Q1) and public expenditure increased by 0.2 percent (+0.9 percent in Q1). Fixed investment contracted 3.1 percent (-1.7 percent in Q1). Exports increased by 1.5 percent (+3.1 percent in Q1) and imports went up by 0.9 percent (+4.6 percent in Q1). As a result, net exernal demand registered a positive contribution to the economy's growth.


Friday August 12 2016
Portugal GDP Growth Steady at 0.2% in Q2
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Portuguese economy expanded 0.2 percent on the quarter in the three months to June 2016, the same pace as in the previous period and in line with market expectations, preliminary estimates showed.

Compared to the first quarter of the year, net external demand was the main driver of growth while domestic demand stagnated.

Year-on-year, the GDP expanded 0.8 percent, lower than a 0.9 percent growth in the previous quarter and in line with market expectations. It was the lowest reading since the first quarter of 2015 as household consumption slowed and investment contracted while positive contribution came from net external demand.

The Portuguese government expects the economy to expand 1.8 percent this year.


Wednesday August 10 2016
Portuguese Jobless Rate Falls to 6-Year Low in Q2
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portuguese unemployment rate fell to 10.8 percent in the second quarter of 2016 from 12.4 percent in the previous period. It was the lowest reading since the second quarter of 2010, as the number of unemployed fell 12.6 percent while employment rose 2 percent. A year ago the unemployment rate was recorded at 11.9 percent.

The unemployed population declined by 80.9 thousand or 12.6 percent to 559.3 thousand people. Unemployment decrease came mostly from: both men and women in a similar pattern, more precisely men (-12.6 percent) and women (-12.7 percent); people aged 35 to 44 (-18.8 percent) and aged 25 to 34 (-15.8 percent); having completed, at most, the first or second stages of basic education (-11.5 percent); looking for a new job (-12.7 percent), having been formerly in the services sector (-10.5 percent); and seeking a job for less than 12 months (-23.1 percent). This decrease, that in the last years has occurred in the 2nd quarter, was rather sharp as the one observed in the 2nd quarter of 2015 (-13 percent).

Youth unemployment rate dropped to 26.9 percent from 31 percent in the previous three months and 29.8 percent a year earlier.

The employed population rose by 89.2 thousand or 2 percent to 4,602.5 thousand people. Employment increased for: services (+1.4 percent); industry (+1 percent) and agriculture (+11.2 percent). This increase is usual in the 2nd quarters of each year, even if with different amplitudes. The increase now observed is lower than the one that occurred in 2015, equal to the 2014 one and higher than those of 2013, 2012 and 2011.

The employment rate stood at 51.9 percent compared to 50.9 percent in the previous quarter and 51.7 percent from the same quarter of 2015.

The participation rate of the working age population stood at 58.3 percent compared to 58.1 percent in the previous quarter and 58.6 percent from the same quarter of 2015.

Year-on-year, the number of unemployed went down by 61.1 thousand people or 9.8 percent while the number of employed people rose by 21.7 thousand or 0.5 percent. 




Wednesday August 10 2016
Portugal Inflation Rises to 0.6% in July
INE | Yekaterina Guchshina | yekaterina@tradingeconomics.com

Consumer prices in Portugal went up 0.6 percent year-on-year in July of 2016, following 0.5 percent increase in the previous month and below market expectations of 0.8 percent. The largest upward pressure came from food and restaurants and hotels while transport and health prices continued to decline. On a monthly basis, prices dropped 0.7 percent.

Year-on-year, prices increased for food and non-alcoholic beverages (+1.65 percent from 1.01 percent in June); restaurants and hotels (+2.62 percent from +2.61 percent in June) and clothing and footwear (+1.32 percent from -0.86 percent in June). In contrast, prices grew at a slower pace for housing and utilities (+0.12 percent from +0.69 percent in June); furnishing (+0.35 percent from +0.69 percent in June); communication (+1.66 percent from +1.75 percent in June); alcoholic beverages and tobacco (+1.77 percent from +1.89 percent in June) and transport prices declined at a faster 2.1 percent (-1.49 percent in June).

Annual core inflation which excludes prices of food and energy rose to 0.8 percent from 0.7 percent in June. 

On a monthly basis, consumer prices fell 0.7 percent, compared to 0.1 percent rise in June and reaching the lowest in six months. Cost of clothing and footwear was the main driver of the slowdown, falling by 12.24 percent while transport prices recorded the highest upward pressure (+1.36 percent).