Flash Notes

Portugal grew 6,7% in 2022 and in 2023 is expected to advance by only 1%

• 2023 will be a tough year due to the existence of strong headwinds coming from higher inflation and interest rates, but a recession should be avoided as Portugal is less vulnerable than central and northern Europe to high energy prices: the proportion of renewables in the primary energy mix is higher; dependence on Russian gas is low (2021: total energy imports from Russia represented 8% of total energy imports); and also due to the capacity to receive LNG (port of Sines) and due to the existence of long term contracts with different gas providers. Comparatively less heavy energy intensive industrial sector is also a plus in the current scenario.