TOURISM RESPONSIBLE FOR ALMOST HALF OF GDP GROWTH IN PORTUGAL

  • 12 August, 24

Tourism consumption in Portugal “was decisive” for the expansion of the Portuguese economy in 2023, contributing to almost half of real GDP growth.

According to data released by the National Statistics Institute (INE), tourism contributed 1.1 percentage points (p.p.) to real GDP growth in 2023, which was 2.3%.

In this context, “it is estimated that, in 2023, tourism consumption had a total contribution (direct and indirect) of 12.7% (33.8 billion euros) to GDP and 12.4% (28.7 billion euros) to the GVA [Gross Value Added] of the national economy”, reveals the Portuguese statistics office.

The Tourism Satellite Account for last year also indicates that the Gross Value Added Generated by Tourism (VABGT) and Tourism Consumption in the Economic Territory (CTTE) recorded nominal increases of 16.0% and 15.5%, respectively, “revealing a dynamism greater than that of the national economy (national GVA and GDP grew 10.1% and 9.6%, respectively)”.

Both indicators are at historic highs, with tourism consumption being equivalent to 16.5% of GDP in 2023 and VABGT representing 9.1% of national GVA in 2023 (8.6% in 2022).

Tourism GDP “increased 15.2% in nominal terms compared to 2022 and 33.1% compared to the pre-pandemic period (2019)”, although the INE points out that inflation had an impact on the figures: “There was a strong price effect in this period, so that, in volume terms, Tourism GDP should have been 13.5% above the 2019 figures”. These figures therefore show that the sector has already recovered from the pandemic, when there was a significant drop in tourism. “The CTTE and VABGT recorded values ​​in 2022 higher than in previous years, which were again surpassed in 2023, corresponding to historical highs”, notes the INE. In an international comparison, for which data only for 2022 is available, Portugal was the second country that recorded the highest relative importance of tourism demand in GDP (15.6%), having been surpassed only by Iceland (17.4%).

Cre: portugalnews