SYNTHESIS INE@COVID-19, 15 JUN 2021

June . 15 . 2021 SYNTH SIS IN @ COVID-19 www.ine.pt page 6/10 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt As a result of the economic policy measures taken in 2020 to lessen the impact of the COVID-19 pandemic, expenditure on subsidies, current transfers, and capital transfers increased by EUR 4.7 billion, compared to the previous year (rate of change of +58.9%). The investment increased by 16.3% (EUR +633 million compared to 2019) and property income (which mainly corresponds to interest paid) decreased by EUR 546 million (-8.6%). Comparing with the Euro area, Portugal has a greater share, concerning GDP, in expenditure on compensation of employees (11.7% vs. 10.7% in the Euro area) and property income (2.9% vs. 1.5%). Regarding expenditure on social benefits, intermediate consumption, and investment, the average for the group of countries in the Euro area recorded greater shares than Portugal. Government expenditure items in Portugal and the Euro area (% of GDP) 11.7% 5.6% 2.9% 2.2% 19.8% 48.4% 10.7% 6.2% 1.5% 3.1% 25.7% 54.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Compensa�on of employees Intermediate consump�on Property income (interest included) Investment Social benefits Total expenditure Euro area Port u ga l More information available at: Main aggregates of General Government, statistics of public expenditure – 2020 (8 June 2021) The number of building permits foresees positive perspectives for construction In the 1 st quarter of 2021, compared with the same quarter of the previous year: • Building permits (6.5 thousand) increased by 7.0% (+1.0% in the 4 th quarter of 2020); • Building permits for new constructions grew by 8.4% (+3.4% in the previous quarter); • Renovation permits increased by 1.5% (-6.3% in the previous quarter); • Completed buildings (3.7 thousand) decreased by 13.6% (-4.1% in the 4 th quarter of 2020). Permits and completed buildings (monthly year-on-year rates of change) 7.0% 13.6% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 Building permits Completed buildings