Although the Confidence Indicator “remained above the average of the historical series”, the economic climate in the fourth quarter of 2024 proved to be “unfavorable, reflecting a negative trend and a less favorable evolution” in relation to the same period of the previous year, according to the Economic Situation Survey of Companies for the fourth quarter of 2024.
The study by the National Statistics Institute (INE) says that the situation resulted, to a large extent, from the negative impact of confidence recorded in the extractive industries and transport, which evolved “unfavorably” compared to the same quarter of the previous year.
According to the survey, the economic situation during the period was, on the other hand, favorable for the construction and communication sectors, with confidence indicators showing a “positive trend and favorable evolution” compared to the same quarter of the previous year and remaining above average.
The manufacturing sector confidence indicator also evolved favorably compared to the same quarter of the previous year and remained above average.
Insufficient demand, financial difficulties, excessive bureaucracy and state regulations were the main constraints recorded in the tourism sector. Difficulties in finding appropriately trained personnel and excessively high sales prices have similarly limited companies in this sector, highlights the INE.
The economic situation in the months of October, November and December 2024 “was favorable” for the trade sector, “as the indicator showed a positive trend and evolved favorably in relation to the same quarter of the previous year”.
According to businesspeople, the products sold were mostly of national origin, according to the survey, noting that financial difficulties, excessive bureaucracy and insufficient demand were the main factors reported in the trade sector.
Very high sales prices and difficulties in finding appropriately trained personnel have also hampered companies in the sector, the report adds.
