Economic activity slowed down in June, in year-on-year terms, despite the slight improvement in industrial production, and had the lowest contribution from net external demand, according to the CIP/ISEG barometer, released this Monday.
“Only next month will it be possible to advance an estimate for GDP growth in the second quarter, however, it is already possible to predict that this growth will have a greater contribution from domestic demand, in return for a smaller contribution of net external demand”, concluded the analysis by the Portuguese Business Confederation (CIP) and the Higher Institute of Economics and Management (ISEG).
The barometer points out that the uncertainties regarding the evolution of the economy in the second quarter do not call into question the maintenance of the annual growth forecast advanced in previous reports, that is, the range of 1.5% to 2.1% increase in Gross Domestic Product (GDP) with the central point at 1.8%.
In sectoral terms, the growth trend in industrial production stands out, which approached 5% in the last two months, but is very dependent on the production of electrical energy.
The barometer also highlights that “improving the performance of the single currency area currently appears more likely, however, the negative risks arising from the global geopolitical situation remain”.
“We have to do more and better in this second semester. The reforms of the fiscal and administrative system have to gain traction. And the implementation of the PRR must also maintain the focus of the last few months to make up for lost time “, said, quoted in a statement, the general director of the CIP, Rafael Alves Rocha.
