The Government predicts an unemployment rate this year of 9,6% and 8,7% in 2021, according to the macroeconomic scenario that is part of the Economic and Financial Stabilization Program.
The Council of Ministers resolution approving this program was published on Saturday night in the supplement to the Diário da República and includes the Government's forecasts for 2020 and 2021, which had not been presented on Thursday, in the press conference that followed to the executive meeting.
"Due to the effect of the measures to support employment adopted [in the context of the Covid-19 pandemic], it is estimated that the reduction in employment is significantly lower than the reduction in GDP", reads the explanations accompanying the macroeconomic framework .
In relation to GDP, the Government estimates a drop in GDP of 6,9% this year, due to the pandemic, but forecasts a 4,3% growth in 2021.
“For 2020, a strong contraction of the Portuguese economy is expected, as a result of the economic shock caused by the Covid-19 disease pandemic and the containment measures implemented. In this context, an abrupt drop in the real rate of change of GDP [Gross Domestic Product] is expected to 6,9%, the biggest contraction recorded in recent decades”, the document reads.
The Government will present this year's supplementary budget proposal on Tuesday.
Comments