SYNTHESIS INE@COVID-19, 22-MAY-2020

May . 22 . 2020 page 8/16 Communication Unit | tel: +351 21 842 61 00 | sci@ine.pt www.ine.pt SYNTH SIS IN @ COVID-19 A sharp decline in economic activity In the Euro Area (EA), GDP in real terms registered a year-on-year rate change of -3.2% in the 1 st quarter of 2020 (+1.0% in the previous quarter), recording the most intense decrease since the 3rd quarter of 2009. In Portugal, GDP recorded a year-on-year decrease of 2.4% in volume in the 1 st quarter (+2.2% in the previous quarter). In Portugal, the short-term indicators for economic activity from the perspective of production, available for March, already reflected the effects of the pandemic. The consumer confidence indicator registered the largest decrease compared to the previous month, reaching the minimum value since May 2013. Expectations regarding the evolution of the country’s economic situation and major purchases were at their minimum values ever in April. • The economic climate indicator revealed a reduced sharply reduction in April compared to the previous month, reaching its minimum value since November 2013. • The quantitative indicator of private consumption registered in March the minimum year-on-year rate of change since December 2011, mainly due to the abrupt decrease in durable consumption, particularly the expenditures with the acquisition of motor vehicles. • The Manufacturing industry confidence indicator decreased in April to the lowest level since April 2009. This figure reflects the negative views on the evolution of the current global demand and the production prospects of the enterprises. • The Construction and Public Works confidence indicator presented the highest decrease in the series in April, reaching its minimum value since November 2015. This figure reflects the balance of opinions on order books and perspectives on employment, which reached new minimums since July 2016 and September 2013 respectively. • The Trade confidence indicator declined sharply in April, reaching a new minimum in the series. This evolution resulted from the negative contribution of the enterprises´ perspectives on business activity as well as of opinions on the evolution of sales and the volume of stocks. • The Services confidence indicator decreased to the minimum value since April 2001, as a result of the negative contribution of all components, which registered the largest monthly reduction of the respective series and reached minimum values. • The economic activity indicator recorded an abrupt reduction in March and reached its minimum value since March 2013. • In March, the investment indicator recorded a record decrease in the series compared to the previous month, with the most intense year-on-year reduction since March 2013, after the growth observed in the first two months of the year. Sales of passenger cars (Year-on-year change) -100,0 -80,0 -87,9% -60,0 -40,0 -20,0 0,0 20,0 40,0 60,0 80,0 100,0 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15 Jan-17 Jan-19 y-o-y rate/% In April, the sales of passenger cars decreased by 87.9% (in year-on-year terms), after an increase of 57.5% in March.