Portugal, the southern European country on the Iberian Peninsula, reported its first case related to COVID-19 on March 3rd, 2020, and within a month the cases reached near to 10,000. As per the International Monetary Fund, the GDP of the country was $236.4 billion in 2019 with a growth of 2.9% as compared to last year. Due to the COVID-19 outbreak, a slowdown in all major economies has been witnessed due to which the exports and tourism sector of the country will be affected in the near future. In the wake of this, the government of the country has announced a package of around $10.0 billion in order to support workers and to provide liquidity to the companies. The package is equivalent to 4.3% of the country's GDP. The country reported a surplus budget of 0.2% of GDP in 2019 due to the strong economic growth however due to the pandemic the budget will report a fiscal deficit in 2020. 

The impact of COVID-19 pandemic on Portugal's economy is studied by classifying the economy into energy, healthcare, retail & e-commerce, aviation, manufacturing, travel & tourism, and other verticals. Most affected sectors in the country include aviation, tourism, and other temporary works. Portugal is highly dependent on the tourist for its income. Around 16.3 million, tourists visited the country in 2019 as compared to 10 million in 2014. As per the government data, in 2018 the share of the tourism sector was around 14.6% of the GDP, much higher than the global average. As per the Portuguese Hotels Association (AHP), by the 10th of March, when the COVID-19 was at the initial stage in the country, the cancelation rate for 411 hotels was around 60%. On 12 March 2020, the government announced the highest level of alert till 9th April and on 18 March 2020 state emergency was declared in the country for 15 days. Moreover, on 2nd April 2020, the state emergency extended to 17th  April 2020. 

Key companies operating in Portugal whose business operations are affected due to COVID-19 include Continente, Groupe PSA, Groupe Renault, Jeronimo Martins, SGPS, S.A, Portugal Telecom SGPS SA, ANA Hotels Portugal, S.A., TAP Air Portugal, VIP Hotels, Volkswagen AG and so on. Multiple manufacturing companies have shut down their operations due to the COVID-19 pandemic. For instance, PSA announced to shut down its plant in France, Germany, Spain, UK, and Portugal. Renault also shut down its operations in the country by mid-March 2020, Moreover; Volkswagen’s Portugal plant reduced its capacity by 16% due to a shortage of workers and low demand. 

Research Methodology

OMR global recently published a report addressing the impact of COVID-19 on Portugal's economy. The study is incorporated by extensive primary and secondary research conducted by the research team. Secondary research has been conducted to refine the available data. Different approaches have been worked on to derive the market value and market growth rate. In the report, the analysis of the country is provided by analyzing various regional players, laws and policies, consumer behavior and macro-economic factors. The report includes analysis of different regions and the effects of COVID-19 on Portugal's economy of each respective region. Besides, an expected recovery timeline of the industry will also be included with the best- and worst-case scenario which will aid clients to take their future steps in the decision-making process.

Sources Include

• Financial reports of companies involved in the market
• Whitepapers, research-papers, and news blogs
• Company websites and their product catalog
• Government Organizations Reports

The report provides an in-depth analysis on market size, intended quality of the service preferred by consumers. The report will serve as a source for 360-degree analysis of the market thoroughly integrating different models.

The Report Covers

• Comprehensive research methodology of the pre and post-COVID-19 impact on the Portugal economy.
• A detailed and extensive market overview with key analyst insights.
• An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
• Analysis of regional regulations and other government policies impacting the Portugal economy.
• Insights about market determinants which are stimulating Portugal's economy.
• Detailed and extensive market segments with regional distribution of forecasted revenues.
• Extensive profiles and recent developments of market players.