The country's economic indicators registered year-on-year growth in March, which is mainly explained by the effect of last year's very low base.
For the first time since the pandemic arrived in Portugal, the economic indicators measured by the Statistic Portugal (INE) registered year-on-year growth in March, which was mainly explained by the effect of last year’s very low base. Both the consumer confidence and the economic climate indicators rose in March, according to the report released this Tuesday.
“In Portugal, not considering three-months moving average, the information available for March, reveals positive year-on-year rates of change, after negative rates since the beginning of the pandemic,” writes the statistics office, explaining that “this evolution is largely due to a base effect, since, for the first time, after a year, the comparison focuses on a month already strongly affected by the pandemic (March 2020).”
The consumer confidence indicator improved “significantly” in March thanks to the pandemic slowdown, reaching its highest level in almost a year. “This evolution was due to the positive contribution of all components, mainly from the perspectives regarding the future evolution of the country’s economic situation, followed by the remaining components, expectations on the future evolution of spending money on major purchases and of household’s financial situation and opinions about the past evolution of household’s financial situation,” the INE explained.
Statistics Portugal also said the economic climate indicator grew in March, “contrary to the reduction observed in the previous month,” adding that the boost in confidence was transversal to the manufacturing industry, trade and services, having stabilized in construction and public works.