GDP grew 17.7% in 2022

In 2022, the Gross Domestic Product (GDP) grew by 17.7%, after the 6.8% increase in 2021, which was preceded by a historic decrease in 2020 (-19.3%), following the effects effects of COVID 19 on economic activity. According to INE data released today, in the 4th quarter of 2022, GDP registered, in year-on-year terms, a positive variation of 9.1%, in volume.

According to data recently released by INE, from an expenditure perspective, GDP growth in 2022 is essentially due to the components of private consumption expenditure and exports of goods and services.

With regard to exports of services, the result partly reflects the significant increase in the tourism component.

On the supply side, Gross Added Value (GVA) at base prices, showed a positive year-on-year evolution of 7.9% in real terms in the 4th quarter, decreasing 12.5 pp in relation to the previous quarter.

According to INE, GVA in the Agriculture branch increased by 11.9% in the 4th quarter of 2022, contributing positively by 0.3 pp to the total change in GDP growth.

GVA in the Manufacturing Industry branch recorded an increase of 2.5% (-2.1% in the 3rd quarter of 2022), contributing positively by 0.1 pp to the total change in GDP growth.

In the Construction branch GVA there was a decrease of 20.8% in the 4th quarter, with a negative contribution of 2.0 pp in the total change in GDP growth.

Compared to the same quarter of 2021, GVA in the Commerce branch showed, in the 4th quarter of 2022, a positive year-on-year change of 20.8% in volume, (40.1% in the previous quarter), translating into a contribution to positive year-on-year GDP growth of 2.0 pp

As for the GVA of the Transport and storage and Accommodation and Restaurant sectors, in real terms, it presented a variation of 34.1% and 62.9%, respectively, in the 4th quarter, (contributing 2.2 pp and 3. 3 pp respectively, for the total change in GDP growth).

In turn, GVA in the Public Administration branch had, in the 4th quarter, a year-on-year variation of -12.4%, (-8.5% in the 3rd quarter of 2022), contributing by -1.7 pp to the variation total GDP growth.

Net Taxes on Subsidies on Products, in real terms, showed a positive year-on-year change of 16.8% in the 4th quarter, contributing 2.2 pp to the total change in GDP.

Optics Expense

According to INE, Final Consumption (private and public) had a positive year-on-year change of 10.8% in the 4th quarter of 2022 (18.6% in the previous quarter).

Private consumption increased by 16.8% in real terms in the 4th quarter of 2022 (28.2% in the 3rd quarter).

Public consumption, on the other hand, showed a negative year-on-year change rate of 7.0%, in volume (-7.7% in the previous quarter), while investment registered a negative year-on-year change of 35.2%, in volume, in the 4th quarter 2022 (-20.6% in the previous quarter).

Exports and Imports increased

Exports of Goods and Services, in volume, decelerated significantly in the 4th quarter, to a year-on-year change of 53.4% (115.5% in the previous quarter).

Data indicate that exports of goods grew by 27.6% year-on-year (89.3% in the previous quarter), while exports of services had a positive variation of 61.9% (128.1% in the 3rd quarter).

According to the same source, Imports of Goods and Services, in volume, increased by 6.5% year-on-year, a rate lower by 13.4 pp compared to the previous quarter, with slowdowns being observed in both components, to variations of 5 .6% in imports of goods (21.5% in the 3rd quarter) and 10.7% in imports of services (12.7% in the previous quarter).