Porto Economic Bulletin: record tourism, rising inflation, and lowest unemployment in 25 years
05/05/2023
Written by
GIEE | CM Porto
The Data and Strategic Studies Office (GIEE) of Porto City Council has published the Porto Economic Bulletin for the fourth quarter of 2022. This document outlines the latest data on the city's economy, gathering a number of socio-economic indicators about macroeconomics, business, talent, consumption (ATM transactions), and tourism.
At the macroeconomic level, inflation measured by the consumer price index (CPI) takes centre stage, reaching its highest level in the last 30 years, with prices rising by approximately 9.9% compared to the previous year. This has led to a decline in household purchasing power and a decline in consumer confidence.
Inflation rate in Northern Portugal based on the CPI (Base 2012)
International trade in goods hit a 10-year peak, although it was accompanied by a 40% increase in the trade deficit for goods. However, this was partially offset by a rise in service exports, mainly driven by the tourism sector.
Household and corporate debt growth continued to slow down, possibly indicating increased challenges in accessing credit due to rising interest rates. This could potentially affect both consumption and investment in Porto.
November saw a surge in business closures, particularly affecting the retail, accommodation, and restaurant sectors. Nevertheless, the creation of new businesses remained high, although it decelerated compared to previous quarters.
Registered unemployment continued to decrease, reaching its lowest point in the past 25 years. Meanwhile, consumption exhibited an upward trajectory, with Multibanco ATM network transactions hitting a record value of €278.9 million in December.
Passengers carried at Porto Airport (arrivals plus departures)
The tourism sector performed remarkably well, reaching all-time highs in several metrics. Porto's airport set a new record, handling 3.12 million passengers in the fourth quarter, while the number of tourists staying in the city increased by 44% compared to 2021, totalling 557,000 guests and 1.17 million overnight stays.
Porto Economic Bulletin Q4 2022 (in portuguese)
The Porto Economic Bulletin is a periodical publication prepared by the Data and Strategic Studies Office of Porto City Council. The most recent editions of the bulletin are available on our library.
