Portugal Unemployment (% of active population, aop)

Unemployment Rate in Portugal

The economy continued to expand in Q1. Lower inflation throughout Q1 seemingly boosted private spending, as signaled by retail sales expanding, on average, in month-on-month terms in January–February. That said, industrial production contracted in sequential terms in January and February, while annual merchandise exports growth eased in the same two-month period, likely dented by global headwinds. Additionally, financial conditions tightened during the quarter, which should have taken a toll on investment. Turning to Q2, improvements in business and consumer sentiment in April point to sturdier activity. In other news, on 14 April, Fitch affirmed the country’s ‘BBB+’ rating with a stable outlook, citing a declining fiscal deficit but still-elevated public debt.