The COVID-19 pandemic and the social distancing measures adopted to contain the health crisis led to a significant drop in global economic activity in the first half of 2020. However, the impact on the various countries was differentiated, in line with their productive specialization.  In this context, it should be noted the Portuguese economy's higher specialization vis-à-vis the euro area in the Accommodation and food sector, which implies higher vulnerability to the impact of the pandemic. 

According to the Fast and Exceptional Enterprise Survey ¬ COVID-19 (COVID-IREE), the negative impact on firms’ turnover between April and June was widespread, but presented different intensities by sector. The impact was more negative in services, particularly in Accommodation and food services, Transportation and Arts, entertainment and recreation activities. In these three months, the average reduction on turnover was around 70% for Accommodation and food services, and Arts, entertainment and recreation activities, and around 60% in Transportation (more than 80% in the Air transport sub-sector). These sectors, and in particular the Accommodation and food services and Transportation sectors, have increased their share in total GVA over the recent years and weight more in total GVA in Portugal than in euro area. 

For more details see section 3.2, part III of the Economic Bulletin for October, Banco de Portugal. 

Prepared by Fátima Cardoso and Domingos Seward. The analyses, opinions and findings expressed above represent the views of the authors and not necessarily those of Banco de Portugal or the Eurosystem.

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