The new imprisonment in Portugal, which began on January 15, has led to a strong deterioration in the country’s economic activity, the Bank of Portugal points out, based on the new indicator launched on Thursday, January 28, which allows short-term economic developments.
In a statement issued today, Banco de Portugal said that “the daily economic activity index (DEI) indicates a significant decline over the past week since the start of imprisonment on January 15.”
This Daily Economic Performance Indicator (DEI) includes information on a quantitative nature and daily frequency, such as road traffic of heavy commercial vehicles on highways, electricity and natural gas consumption, cargo landed at national airports and purchases made with postage and cards. By Portuguese residents and residents on a daily basis to “measure the pulse” of economic activity.
In this first report, the organization, led by Mario Senteno, explains that the Covit-19 epidemic and the disruption it causes in the world economy “hastened the use of high-frequency data to capture very short-term economic developments.”
“In this context and to provide the public with another tool to monitor the Portuguese economy, Banco de Portugal today introduces the Daily Economic Activity Index (DEI),” the central bank concludes, releasing a new indicator every Thursday. , With information up to the previous Sunday.
The new imprisonment, rooted in the deterioration of activity identified by the Portuguese bank, has led Catholic economists to revise downward estimates of GDP by 2021. NECEP’s most recent update indicates a “2% shrinkage” in the Portuguese economy, down 4.5 percentage points compared to the company’s previous plan.
The further decline in GDP this year is unprecedented in the government or any other agency that has so far published predictions about the evolution of the Portuguese economy. In the economic framework with the state budget proposal for 2021, the government hoped for 5.4% growth in the economy.
“The main reason for this review is the entry into force of the strict prison regime announced by the government on January 13. What is a significant but low probability event has been confirmed,” economists said in a note released last week.