The economy grows by 1.4% in the first quarter, and inflation falls to 2.2% in April

GDP in real terms It expanded by 1.4 percent from January to March 2024. This after growing by 2.1 percent in the previous quarter.The National Institute of Statistics indicates that the positive contribution of domestic demand to the annual variation in product decreased in the same period. There was a slowdown in investment and private consumption.

“The contribution of net external demand to the annual variation in GDP was zero, after being positive in the previous quarter, where Exports of goods and services slowed in volume and imports of goods and services accelerated slightly“, reveals INE.

Compared to the fourth quarter of 2023, GDP increased by 0.7% in terms of volume, a rate similar to that recorded in the previous quarter.

“The contribution of net external demand to the series variance in GDP became positive in the first quarter, reflecting the slowdown in imports of goods and services that was more pronounced than the slowdown in exports of goods and services,” the National Institute of Statistics’ page said.

According to the institute, “the positive contribution of domestic demand decreased with… Decreased investment and acceleration of private consumption“.
Inflation is estimated at 2.2%
The National Institute of Statistics is ahead, though The annual rate of change in the CPI will fall to 2.2% in April 2024This is 0.1 percentage points lower than the previous month.

“The core inflation index (the overall index excluding unprocessed food and energy products) will record a variation of 2.0% (2.5% in the previous month),” the National Institute of Statistics note notes.

According to data collected by the institute. The variance in the index related to energy products increased to 7.9%. (4.8 in the previous month), due to the base effect associated with the price reduction recorded in April 2023 (monthly variation of -3.2 percent).

The unprocessed food products index registered a zero rate of change (-0.5 percent in March).

“Compared to the previous month, the variance in the IPC will be 0.5% (2.0% in March and 0.6% in April 2023),” the National Institute of Statistics said, estimating the average variance in the past 12 months at 2.6 percent ( 2.9). in the previous month).

As for the Portuguese Harmonized Consumer Price Index (HIPC), it was there An annual change of 2.3 percent (2.6 in the previous month).