Lisbon, Portugal street

Portugal GDP Q3 2021

Portugal: Economic growth moderates in the third quarter

According to a preliminary estimate, GDP growth moderated to 2.8% on a seasonally-adjusted quarter-on-quarter basis in the third quarter, from 4.5% in Q2. On an annual basis, economic growth slowed markedly to 4.2% in Q3, down from the previous period’s 16.2% expansion.

Although a detailed breakdown is not yet available, early data shows that domestic demand contributed positively to the print, despite losing some momentum. Meanwhile, the external sector rebounded from Q2, with tourism activity increasing throughout the quarter.

Going forward, the rejection of the 2022 draft budget in parliament, which has triggered snap elections on 30 January, means that the 2021 budget will be rolled over until a new bill is passed. Moreover, there is a risk that parliament will remain fractured after the election. This in turn threatens the outlook for 2022, as a significant portion of EU funds—which are key to investment—require the approval of a budget. More positively, a well vaccinated population should provide some protection against future Covid-19 outbreaks and restrictions, boding well for household spending.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest