Annual GDP grew 6.7 per cent in 2022

Exports and consumption were the components that most contributed to this strong pace of growth that brought the Portuguese GDP to 3,3% above the 2019 level. 2023 will be a tough year due to the existence of strong headwinds coming from persistent 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. First data for 2023 seems to confirm a more resilient activity than predicted some months ago.