Portugal’s purchasing power grew by 3.4 percentage points in 2022 compared to 2021, accounting for 78.7% of the European average and keeping the country in 16th place among the 19 eurozone countries.
According to data published this Thursday by the National Statistics Institute (INE), in 2022 Portugal’s gross domestic product per capita, expressed in purchasing power parity (PPP), was 78.7% of the European Union average, i.e. 3. 4. percentage points higher than recorded in 2021 (75.3%).
Last year, Portugal maintained 16th place among the 19 eurozone countries – below countries such as Lithuania (89.2), Spain (85.5) and Estonia (85.0) and ahead of Latvia (72.6), Slovakia ( 71.0) and Greece (67.2) – and 20th place in the European Union in this indicator.
INE also states that in nominal terms, Portugal’s gross domestic product (GDP) per capita (GDPpc) grew by 12.1% last year as a result of a nominal increase in GDP (12.2%), “as the population in 2022 was slightly higher than in the previous year.”
Globally, the statistical institute reports “high dispersion” in the GDP per cent indicator, measured in PPP, across the 27 EU member states: Luxembourg (256.3) has the highest index among the 36 countries analyzed, corresponding to more than two and a half times higher than the EU-27 average and about four times higher than Bulgaria (62.1), the EU country with the lowest value.
The coefficient of variation of GDPpc in the 36 countries considered in the study was 50.6%, slightly higher than in 2021 (49.9%).
Between 2022 and 2021, there were “significant differences” in volume indices of GDP per interest rate measured by PPP, with 11 of the 36 countries analyzed recording a contraction, according to INE.
The largest declines occurred in Luxembourg (-9.8 percentage points), which remains the country with the highest volume index, France (-3.1 percentage points) and Germany (-2.9 percentage points).
In contrast, “significant increases” in volume indices of GDP per capita stand out in Norway (44.6 percentage points) and Ireland (14.0 percentage points), the second and third countries with the highest levels of “per capita” well-being.
According to the institute, Portugal’s individual consumption expenditure (DCI) per capita, which is “a more appropriate indicator for reflecting the well-being of families” (while GDPpc is mainly a measure of the level of economic activity), is set at 87 in 2022 .0% of the EU average, which is 2.6 percentage points higher than in 2021 (84.4%).
According to this indicator, Portugal ranks 12th in the eurozone and 15th in the European Union, having improved two and three positions, respectively, compared to last year.
INE warns that the results published today “should be analyzed with caution, especially from the perspective of temporal evolution, as changes of varying nature occur over time.”
We are talking, in particular, about changing the choice of a common basket of goods and services for comparison, the methods and sources of prices used in the CPP, as well as the replacement of preliminary values with final values from national accounts.
“As a result, there could be a significant revision of GDP for 2021,” he notes, citing as an example the fact that in the current analysis, GDP for 2021 was revised by -2.7 and +3.6 percentage points for Estonia and Slovakia respectively. (these were extreme changes in EU countries), while Portugal presented a revision of 0.2 percentage points.
Author: Lusa
Source: CM Jornal
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