SYNTHESIS INE@COVID-19, 29-juN-2020

June . 29 . 2020 page 4/5 Communication Unit | tel: +351 21 842 61 00 | sci@ine.pt www.ine.pt SYNTH SIS IN @ COVID-19 Taking quarterly figures as a reference, the net balance of the GG was -1.1% of GDP (EUR -570.9 million), which compares with +0.1% in the same period of the previous year. This result in year-on-year terms is due to a higher increase in total expenditure (4.3%) than the increase in total revenue (1.1%). Households The net lending of Households stood at 2.1% of GDP (+1.6% in the previous quarter), mirroring the 9.7% increase in savings. The saving rate of Households increased to 7.4% (+6.8% in the previous quarter), as a result of the 0.9% increase in the compensation of employees (which, in the 1 st quarter 2020, does not yet reflect the negative impacts of the COVID-19 pandemic) and the slight reduction in final consumption (-0.1%). Considering actual quarterly figures and not annual values, the household savings rate increased by 2.9 p.p. in the 1 st quarter of 2020 compared to the same quarter of the previous year, mainly reflecting the reduction in private consumption. The disposable income continued to increase, with the improvement of the compensation of employees as the COVID-19 pandemic has not impacted this variable and the social benefits received. Household savings rate and NPISH (%; year ending in the quarter) 7.4% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 -0.5 0.0 0.5 1.0 1.5 2.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 2019 2020 Rate of change of final consumption (left scale) Rate of change of disposable income (left scale) Savings rate (right scale) % %

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