1H22 Financial Performance
Portuguese macroeconomic environment
Macroeconomic environment
Impacts from the war in Ukraine are mostly indirect, through higher inflation and interest rates.
Headline and core inflation rate
(CPI, % YoY)
•
⚫ Direct exposure of Portugal to Russia and
Ukraine is small. In 2021, merchandise
exports to Russia and Ukraine amounted to
0.3% and 0.06% of total, respectively.
Merchandise imports from Russia were 1.3%
of total (mainly gas and fertilisers). Direct
investment is also not significant.
⚫ 83% of Portugal's gas is supplied by Africal
and the US. More than 50% of electricity is
generated by renewable energy sources.
• Impacts of the war in Ukraine are being felt
mainly through a rise in producer and
consumer inflation and through shortages of
materials and intermediate consumptions.
•
CPI inflation rose from 3.3% to 8.7% YoY in
1H 2022. Producer prices are up by 24.5%
YoY. Energy and Food with major contributions
to inflation in 1H 2022.
10
8
6
4
2
0
95
75
55
-5
novobanco
Sources: INE, DDAE.
Energy and food CPI Inflation,
Portugal and Euro Area (CPI, % YoY)
Euro Area
Portugal
8.7
Total
6.0
38.3
24.0
Core
15.4
10.9
9.1
8.9
-2
2008 2010 2012 2014 2016 2018
2020
2022
Industrial producer price index
(% YoY)
35
Headline
15
Energy
Food
Electricity generation by energy
source (% of total, May 2022 YTD)
Energy
58.0
Wind
30%
24.5
-25
2011
2013
2015
2017
2019
2021
Photovoltaic
6%
Hydro
18%
Thermal
46%
Total
46
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