Portugal posts strongest growth in over 30 years

Portugal recorded its strongest economic growth in over three decades last year, official data showed, enhancing Goan origin Socialist Prime Minister Antonio Costa’s credentials after his weekend election win.

According to the Instituto Nacional de Estatística (the National Statistics Institute - INE), the country’s economy expanded by 4.9 percent, following the historical decline of 8.4% in 2020.

Data indicates that the economy bounced back from the COVID-19 pandemic crisis, lifted by high domestic demand as consumer spending and investments recovered. It may be noted that it is Portugal’s strongest growth since 1990 surpassing the government’s forecast of 4.6 percent.

Data shows that the country’s economy bounced back from the COVID-19 pandemic crisis by 4.9 percent.

Domestic demand presented a significant positive contribution to the annual rate of change of GDP according to INE, after being markedly negative in 2020, with a recovery of private consumption and investment.

The contribution of net external demand was significantly less negative in 2021, with exports and imports of goods and services growing significantly.

It may be recalled that Portugal’s economy contracted by 8.4 percent two years ago, thanks to COVID-19 related travel restrictions and lockdowns that paralysed the country’s vital tourism sector.

The Bank of Portugal however, foresees growth this years and it is expected that the economy will accelerate to 5.8 percent before slowing to 3.1 percent in 2023.

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