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Economy and Banking Sector of Portugal

National Currency

Euro (EUR)

Portugal joined the Euro Area on 1 January 1999.

GDP

Nominal GDP (2019)
212.3 bln EUR  (+0.05%)
Nominal GDP per Capita (2019)
20,660 EUR  (+0.05%)
Real GDP Growth (2019)
2.2 %  (2018: 2.1 %)

According to Eurostat, nominal GDP of Portugal in 2019 was 212.3 bln EUR.

Portugal outperforms the European Union in terms of real GDP growth with the average annual differential coming to 0.1% over the past 10 years (2009 - 2019). In 2019 real GDP growth was 2.2% which was above the Euro Area average (1.2%) and above the European Union average (1.5%). Real GDP growth in 2020 - 2024 are IMF's estimates.

Real GDP Growth in Portugal.

Chart 1. Real GDP Growth in Portugal. Source: Eurostat, International Monetary Fund.

In 2019, nominal GDP per capita in Portugal was 20,660 EUR.

Portugal has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -21.4% over the past 10 years (2008 - 2018). GDP per capita at PPP in 2019 - 2024 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Portugal; European Union = 100.

Chart 2. GDP Per Capita at Purchasing Power Parity in Portugal; European Union = 100.

Inflation Rate

CPI, MoM (May 2020)
-0.2 %  (Apr 2020: 0.8 %)
CPI, YoY (May 2020)
-0.6 %  (Apr 2020: -0.1 %)
CPI, Year Average (2019)
0.3 %  (2018: 1.2 %)

According to Eurostat, inflation rate in Portugal in 2019 expressed as annual percentages of average consumer prices was 0.3% which was below the Euro Area average (1.2%) and below the European Union average (1.5%). Inflation rates in 2020 - 2024 are IMF's estimates.

Inflation Rate in Portugal.

Chart 3. Inflation Rate in Portugal. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2019)
6.5 %  (2018: 7.0 %)

According to Eurostat, unemployment rate in Portugal in 2019 was 6.5% which was below the Euro Area average (7.6%) and above the European Union average (6.3%). Unemployment rates in 2020 - 2024 are IMF's estimates.

Unemployment Rate in Portugal.

Chart 4. Unemployment Rate in Portugal. Source: Eurostat, International Monetary Fund.

Government Bond Yield

Government Bond Yield (Apr 2020)
0.97 %  (Mar 2020: 0.71 %)

According to Eurostat, government bond yield in Portugal in April 2020 was 0.97%, compared to 0.71% in March 2020.

Government bond yield of Portugal.

Chart 5. Government bond yield of Portugal. Source: Eurostat.

Credit Ratings (as of Jun 2020)

Fitch
BBB- (good credit quality), outlook stable
Moody's
Baa3 (lower medium grade), outlook positive
Scope
BBB+ (lower medium grade), outlook stable

Portugal has sovereign credit ratings assigned by American credit rating agencies Fitch and Moody's: the rating set by Fitch is BBB- (good credit quality), outlook stable; the rating set by Moody's is Baa3 (lower medium grade), outlook positive. Scope Ratings, European rating agency, rated Portugal as BBB+ (lower medium grade), outlook stable.