Economic activity in Portugal in April and May recorded a “path convergent” with pre-pandemic levels, with historically high year-on-year growth rates, according to data released on Monday by the National Statistics Institute (INE).
According to the INE, the latest quantitative information available for April and May shows historically high growth rates, largely due to a base effect, since the comparison is with months in 2020 that were heavily affected by the pandemic and which saw the lowest levels of activity and the largest year-on-year decreases of the entire pandemic period.
However, it adds, in general short-term indicators had in April this year not yet reached the levels of the corresponding period of 2019 “and tourism activity is still far from the results of the corresponding period of 2019.”
In the case of goods exports, in nominal terms the level recorded in April was higher than in the same month of 2019.
The quantitative summary indicators – economic activity, private consumption and investment – in April this year showed the maximum values of their respective series, reflecting the strong base effect caused by the huge drops seen in April 2020.
In May, the economic climate indicator increased “significantly” – from the 0.8 points observed in April to 1.8 points in May – so surpassing the level seen at the beginning of the pandemic, in March 2020.
According to provisional estimates from the monthly employment survey, the seasonally adjusted jobless rate (for people aged 16 to 74) was 6.9% in April, up 0.3 of a percentage point from the previous month (having been 6.9% in January and 6.4% in April 2020). The labor underutilisation rate stood at 12.9%, identical to March, while it had been 13.7% in April 2020.
The year-on-year change in the consumer price index, meanwhile, was in May 1.2%, having been 0.6% in April, while the index of factory-gate prices was in May up 3.4% on the month and 6.3% on the year, representing the fastest growth since August 2011.