SYNTHESIS INE@COVID-19, 14 July 2020

July . 14 . 2020 page 6/13 Communication Unit | tel: +351 21 842 61 00 | sci@ine.pt www.ine.pt SYNTH SIS IN @ COVID-19 Business investment expected to decrease by 8.9% in nominal terms in 2020 The expectations reported by the enterprises in the April 2020 1 Investment Survey indicate that this year the entrepreneurial investment should decrease by 8.9% in nominal terms (+3.6% in October 2019, on the intentions for 2020). This change reflects the impact of the COVID-19 pandemic on economic activity and business expectations, which was significantly felt from March onwards. Evolution of business GFCF in value (year-on-year rate of change) -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Final estimate Provisional estimate % Declining rates of change in business Gross Fixed Capital Formation (GFCF) in eight of the thirteen sections of the Classification of Economic Activities (CAE) were expected for 2020, with the emphasis on: • Manufacturing : -21.5%; • Wholesale and Retail Trade ; Repair of Motor Vehicles and Motorcycles : -18.2%. 1 The survey took place between April 1 and June 25. 51% of the responses from the enterprises were obtained during April, so some of the responses may not reflect readjustments in the intentions of the enterprises in investing in light of the pandemic situation. Conversely, the most significant positive rates of change recorded in business GFCFE in 2020 occurred in the following sections: • Transportation and storage : +39.6%; • Real Estate Activities : +23.4%; • Financial and Insurance Activities : +9.8%.