Portuguese economy records the fifth highest growth in the EU in the second quarter


The Portuguese economy registered the highest quarter-on-quarter growth and the fifth largest year-on-year jump among European countries in the period between April and June.

In the second quarter of the year, the Portuguese economy recorded the highest quarter-on-quarter growth (4,9%) among European countries for which data is available. According to the note released Tuesday by Eurostat, in year-on-year terms, the Portuguese GDP recorded the fifth largest positive variation by accelerating 15,5%.

Between April and June, the Euro Zone's GDP grew 2% and the European Union's rose 1,9%. Note that in the first quarter of the year, the European economy contracted as a result of the tightening of restrictions caused by the worsening pandemic crisis. Compared to the same period in 2021, the GDP of the single currency area jumped 13,6% and that of the EU jumped 13,2%, and also in this case, the quarter that serves as a comparative base was severely affected by Covid-19.

Among the European countries, the Portuguese economy recorded the highest growth, rising 4,9%, in the second quarter, a period marked by the progressive deconfinement of the country and, in the wake, by the recovery of activities. It is important to explain that, at the beginning of the year, it was precisely the Portuguese GDP that recorded the largest fall in Europe in relation to the previous quarter, which also helps to explain the surge recorded between April and June.

The same scenario is found in the year-on-year comparison. The Portuguese economy was the fifth fastest growing, in the second quarter, but was the second slowest falling, in the first three months of 2021, when compared to the same period in 2021. In any case, this 15,5% jump is the biggest year-on-year growth registered by the Portuguese GDP in a quarter since at least 1996, when the current historical series from the National Statistics Institute began. For 2021 as a whole, António Costa's government estimates that Portuguese GDP will grow 4%, while the European Commission sees Portugal growing 3,9%.

On the other hand, and according to the note released on Tuesday by Eurostat, between April and June, the economies of Spain (19,8%), France (18,7%), Italy (17,3%) and Hungary (17,7%) recorded higher variations than the Portuguese, i.e. were the most significant of the Old Continent.

According to the Summer Forecast, the European Commission estimates that by 2021 the European Zone and EU economy will grow by 4,8%. The EU executive projects that the Irish (7,2%), Hungarian (6,3%) and Romanian (7,4%) GDPs will shine the brightest. In the case of Spain, France and Italy, variations of 6,2%, 6% and 5%, respectively, are expected.

Source: AICEP