Friday November 30 2018
Portugal Q3 GDP Growth Confirmed at 0.3%
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Portuguese economy grew by 0.3 percent on quarter in the three months to September 2018, unrevised from a preliminary estimate and following a 0.6 percent expansion in the previous period. Household consumption and fixed investment were the main drivers of growth while net external demand contributed negatively and government spending was unchanged.

Domestic demand grew 1.1 in the third quarter (vs 0.6 percent in Q2), with household consumption jumping 0.7 percent (vs 0.1 percent in Q2) and fixed investment rising 0.9 percent (vs 1.7 percent in Q2). Investment in other machinery and equipment and armament systems grew at a softer 0.8 percent (vs 5.1 percent in Q2) and that in construction shrank 0.3 percent (vs unchanged in Q2), while spending rose faster on both transport equipment (6.4 percent vs 1.9 percent) and intellectual property products (1.4 percent vs 0.6 percent). Government spending was flat in the third quarter, following a 0.3 percent expansion in the previous period.

Net external demand contributed negatively to GDP growth, as exports of goods and services dropped 3.6 percent (vs 2.3 percent in Q2) and imports decreased at a slower 1.9 percent (vs 2.3 percent in Q2). 

Year-on-year, the economy grew 2.1 percent in the third quarter, unrevised from a preliminary estimate and following a 2.4 percent expansion in the previous period. Domestic demand advanced 2.4 percent (vs 2.7 percent in Q2), driven by households' spending (2.3 percent vs 2.7 percent), fixed investment (4.5 percent vs 4.1 percent), and public expenditure (0.7 percent vs 0.9 percent). Net external demand contributed negatively, as exports rose 3.1 percent (vs 7.1 percent in Q2) and imports advanced at a faster 3.5 percent (vs 7.5 percent in Q2).




Friday November 30 2018
Portugal Inflation Rate Eases to 0.9% in November
INE | Gabriela Costa | gabriela.costa@tradingeconomics.com

The annual inflation rate in Portugal is expected to edge down to 0.94 percent in November of 2018 from 0.96 percent in October, a preliminary estimate showed. It is the lowest inflation rate since April, mainly due to lower prices of energy.

Lower prices for energy (4.88 percent vs 7.26 percent in October) should be partially offset by a rebound in the cost of unprocessed food products (0.74 percent vs -0.11 percent).

Annual core inflation rate, which excludes energy and unprocessed food products components, is expected to increase to 0.56 percent from 0.45 percent in October.

On a monthly basis, consumer prices are set to decline 0.37 percent in November, following a 0.09 percent drop in the previous month.

The harmonized consumer price index is expected to rise 1.0 percent year-on-year (vs 0.8 percent in October) and to decrease 0.9 percent month-over-month (vs a 0.5 percent drop in October).




Wednesday November 14 2018
Portugal GDP Growth Lowest in Over 2 Years
INE | Agna Gabriel | agna.gabriel@tradingeconomics.com

The Portuguese economy advanced by 0.3 percent on quarter in the three months to September of 2018, following an upwardly revised 0.6 percent expansion in the previous period, a preliminary estimate showed. It was the lowest growth rate since the second quarter of 2016.

Growth was mainly driven by domestic demand, namely private consumption and investment. On the other hand, net trade contributed negatively to growth, after being null in the previous quarter.

Year-on-year, the economy advanced 2.1 percent in the third quarter, following an upwardly revised 2.4 percent expansion in the previous period. It was the lowest expansion rate since the three months to June of 2016. Domestic demand increased at a softer pace, due to a slowdown in private consumption while investment rose faster; and net trade contributed negatively to growth – similar to that observed in the previous two quarters.

In 2017, Portugal’s economy grew by an upwardly revised 2.8 percent.


Tuesday November 13 2018
Portugal October Inflation Rate Confirmed at 1%
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portugal's annual inflation eased to 1 percent in October 2018, unrevised from a preliminary estimate and below the previous month's rate of 1.4 percent. The inflation was at its lowest level since May mainly due to a slowdown in food price growth and a decline in costs of restaurants & hotels, recreation & culture and clothing & footwear.

Food & non-alcoholic beverages inflation slowed to a seven-month low of 0.3 percent in October from 0.8 percent in the previous month. In addition, there was a fall in prices of: restaurants & hotels (-0.6 percent vs 3.3 percent); recreation & culture (-0.5 percent vs 0.4 percent); clothing & footwear (-3.7 percent vs -3.6 percent); and furnishings, household equipment and routine maintenance of the house (-0.2 percent vs -0.4 percent).

On the other hand, inflation was unchanged for housing & utilities (at 2.7 percent) and picked up for transport (4.8 percent vs 4.6 percent), and miscellaneous goods and services (0.9 percent vs 0.6 percent).

Annual core inflation, which excludes energy and unprocessed food products, eased to 0.4 percent in October, below a preliminary estimate of 0.6 percent and September's final reading of 0.9 percent.

On a monthly basis, consumer prices edged down 0.1 percent in October, instead of being unchanged as initially thought and following an increase of 1.1 percent in September. October's decline was led by a fall in restaurants & hotels prices (-2.6 percent vs 2.5 percent).

The harmonized consumer price index rose by 0.8 percent year-on-year (vs 1.8 percent in September) and decreased by 0.5 percent month-over-month (vs 1.5 percent in September).


Wednesday October 31 2018
Portugal October Inflation Rate at 5-Month Low of 1.0%
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The annual inflation rate in Portugal is expected to fall to 1.0 percent in October of 2018 from 1.4 percent in September, a preliminary estimate showed. It is the lowest inflation rate since May, mainly pushed down by lower prices of unprocessed food products.

Higher prices for energy (7.28 percent vs 6.98 percent in September) should be offset by lower cost of unprocessed food products (-0.11 percent vs 1.04 percent).

Annual core inflation rate, which excludes enrgy and unprocessed food products components, is expected to ease to 0.6 percent from 0.9 percent in September.

On a monthly basis, consumer prices are set to be flat in October, following a 1.1 percent increase in the previous month.

The harmonized consumer price index is expected to rise 0.9 percent year-on-year (vs 1.8 percent in September); and to decrease 0.4 percent month-over-month (vs 1.5 percent in September).


Thursday October 11 2018
Portugal Inflation Rate Confirmed at 1.4% in September
INE | Gabriela Costa | gabriela.costa@tradingeconomics.com

The annual inflation rate in Portugal edged up to 1.4 percent in September 2018 from a 3-month low of 1.2 percent in the previous month and matching the preliminary estimate. The biggest upward pressures came from prices of transport and restaurants & hotels.

Year-on-year, prices advanced faster for transport (4.62 percent vs 4.00 percent in August); restaurants & hotels (3.30 percent vs 1.11 percent); miscellaneous goods & services (0.57 percent 0.48 percent) and housing & utilities (2.66 percent vs 2.65 percent), of which rents (2.3 percent vs 2.2 percent). 

On the other hand, cost slowed for food & non-alcoholic beverages (0.84 percent vs 0.90 percent); recreation & culture (0.35 percent vs 0.49 percent); health (1.19 percent vs 1.22 percent) and alcoholic beverages & tobacco (2.15 percent vs 2.40 percent). Additionally, prices declined further for clothing & footwear (-3.60 percent vs -2.46 percent) and furniture & household equipment (-0.35 percent vs -0.31 percent).

Annual core inflation, which excludes energy and unprocessed food products components rose to 0.9 percent, in line with the preliminary figure, from 0.6 percent in the preceding month. 

On a monthly basis, consumer prices went up 1.1 percent as initially estimated, following a 0.3 percent fall in August, as cost rebounded for both clothing & footwear (18.81 percent vs -5.59 percent) and restaurants & hotels (2.51 percent vs -1.84 percent).

The harmonized consumer price index increased by 1.8 percent year-on-year (1.3 percent in August) and rose by 1.5 percent month-over-month, rebounding from a 0.7 percent drop in the prior month.


Friday September 28 2018
Portugal Inflation Rate Ticks Up to 1.4% in September
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Portugal's annual inflation is expected to rise to 1.4 percent in September of 2018 from a three-month low of 1.2 percent in August, a preliminary estimate showed.

Inflation should remain elevated for both energy (6.99 percent vs 7.40 percent) and unprocessed food products (1.04 percent vs 1.06 percent).

Annual core inflation rate, which excludes energy and unprocessed food products components, is expected to increase to 0.9 percent in September from 0.6 percent in the previous month.

On a monthly basis, consumer prices are set to advance 1.1 percent in September, following a 0.3 percent drop in August.

The harmonized consumer price index is expected to went up 1.8 percent year-on-year (vs 1.3 percent in August); and to increase 1.5 percent month-over-month (vs -0.7 percent in August).


Wednesday September 12 2018
Portugal Inflation Rate Confirmed at 3-Month Low of 1.2%
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The annual inflation rate in Portugal eased to 1.2 percent in August 2018 from a 15-month high of 1.6 percent in July, matching the preliminary estimate. It was the lowest inflation rate since May.

Year-on-year, prices increased at a slower pace for: food & non-alcoholic beverages (0.90 percent vs 1.19 percent in July); restaurants & hotels (1.11 percent vs 4.82 percent); miscellaneous goods & services (0.48 percent 0.65 percent) and alcoholic beverages & tobacco (2.40 percent vs 2.87 percent). In addition, cost continued to fall for clothing & footwear (-2.46 percent vs -2.81 percent) and furniture & household equipment (-0.31 percent vs -0.48 percent).

On the other hand, inflation quickened for: transport (4.00 percent vs 3.98 percent); housing & utilities (2.65 percent vs 2.60 percent), of which rents (2.2 percent vs 2.1 percent); recreation & culture (0.49 percent after prices showed no growth in July) and health (1.22 percent vs 1.19 percent).

Annual core inflation, which excludes energy and unprocessed food products components eased to 0.6 percent, in line with the preliminary figure, from 1.0 percent in the previous month. It was the lowest rate since April.

On a monthly basis, consumer prices went down 0.3 percent as initially estimated, following a 0.6 percent fall in July. The main decreases in monthly consumer price index were recorded for clothing & footwear (-5.6 percent vs -13.0 percent) and restaurants & hotels (-1.8 percent vs 1.4 percent).

The harmonized consumer price index rose by 1.3 percent year-on-year (2.2 percent in July) and decreased by 0.7 percent month-over-month (-0.4 percent in July).


Friday August 31 2018
Portugal GDP Growth Confirmed at 0.5% in Q2
INE | Joana Taborda | joana.taborda@tradingeconomics.com

The Portuguese economy advanced 0.5 percent on quarter in the three months to June of 2018, slightly higher than 0.4 percent in the previous period and confirming the preliminary estimates. Household spending was flat while a rise in inventories contributed positively to growth.

On a quarterly basis, the contribution from domestic demand increased (0.9 percentage points compared to 0.8 percentage points in Q1) while net trade subtracted 0.4 percentage points to growth, the same as in the previous period. Household spending was flat after a 0.8 percent rise in Q1; investment jumped 4.7 percent (1.5 percent in Q1) with inventories contributing 0.6 percentage points to growth (-0.2 percentage points in Q1); exports increased 1.8 percent (0 percent in Q1); and imports went up 2.5 percent (0.9 percent in Q1). 

Year-on-year, the economy grew 2.3 percent, above 2.1 percent in the previous quarter and in line with earlier estimates. The contribution from domestic demand went up, mainly due to higher household (2.6 percent compared to 2.1 percent in Q1) and public spending (0.4 percent compared to 0.3 percent in Q1). The tourism sector continues to boost the economy: spending in national territory (3.4 percent) went up faster than spending by residents (2.6 percent). On the other hand, investment rose at a slower rate (6.4 percent compared to 7.1 percent) due to 6.6 percent drop in investment in material transportation. Net trade weighed down on growth more amid higher imports (7.9 percent compared to 5.6 percent in Q1) while exports rose at a faster pace (6.8 percent compared to 4.7 percent). 

For 2018, the Portuguese government targets growth at 2.3 percent.


Friday August 31 2018
Portugal Inflation Rate Slows to 1.2% in August
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portugal's annual inflation rate is expected to ease to 1.2 percent in August 2018 from a 15-month high of 1.6 percent in the previous month, a preliminary reading showed.

Inflation should slow for both energy (7.4 percent vs 7.7 percent in July) and unprocessed food products (1.1 percent vs 1.3 percent).

Annual core inflation rate, which excludes energy and unprocessed food products components, is expected to fall to 0.6 percent in August from 1 percent in the previous month.

On a monthly basis, consumer prices are set to decline 0.3 percent in August, following a 0.6 percent drop in July.

The harmonized consumer price index is expected to advance 1.3 percent year-on-year (vs 2.2 percent in July); and to fall 0.7 percent month-over-month (vs -0.4 percent in July).