The economy has stopped for the second week in a row due to the war in Ukraine

The economy has stopped for the second week in a row due to the war in Ukraine

Portugal’s economic activity slowed in End of March, according to the Daily Economic Activity Index (DEI) released this Thursday by the Bank of Portugal. This is the second stop in a row since the start of the war in Ukraine, but the economy continues to grow more than it did in the same period last year.

“In the week ending March 27, the Daily Economic Activity Index (DEI) indicates an annual rate of change in activity less than what was observed in the previous week,” the Bank of Portugal revealed.

The data shows that between March 21 and 27, the DEI weekly moving average was 7.2%. Compared to the last day of the previous week, the annual growth rate of the national economy decreased by 3.3 percentage points, taking into account that the moving average for the previous week was 10.5%.

Despite these brakes, the DEI still indicates a significant growth of the Portuguese economy compared to 2021. However, it should be noted that a year ago, the country was cornered by the increase in cases of the Covid-19 virus, which led to a downturn in the national economy. Given this, it is difficult to know whether the Russian invasion of Ukraine was actually having an effect on the economy in Portugal.

The Russian invasion of Ukraine began on February 24 and forced the government to revise its growth forecast for this year. Instead of 5.5% initially, the Socialist CEO now predicted that Portugal’s GDP would grow by 5%. In the stabilization programme, the government also estimates that responding to the impact of the war will cost €524 million in this year’s deficit.

DEI is published weekly on Thursdays, with information up to the previous Sunday. It summarizes a set of information of a quantitative nature and daily frequency, such as road traffic of heavy commercial vehicles on highways, electricity and natural gas consumption, goods and mail discharged at national airports, and card purchases in Portugal by residents and non-residents. Residents.