ANNUAL REPORT 2016
ongoing structural reforms.
Measured in volume, the wealth generated domestically is still around 4% be-
low the levels recorded prior to the onset of the international financial crisis,
where the heaviest contributors since then have been the retraction in domes-
tic demand (10.5% lower than in 2008) and in particular in investments (34%
lower). On the positive side, we would highlight exports, 34.6% higher than in
2008, which is proof of the progress made in the tradable sector, the increasing
openness of the economy to foreign trade and the gains in international mar-
ket shares. In the full year, exports of goods and services increased by 4.4% in
volume, maintaining the consistency of the previous years.
On the other hand, the acceleration seen in imports is proof of the fact that a
significant part of domestic demand falls on consumption and on investment
goods with a high imported content, with the inherent negative impact on GDP
performance.
With regard to the job market, it should be mentioned that the unem-
ployment rate stood at 11.1% in 2016 (the lowest since 2010, which was
10.8%), and it is estimated that it will continue to gradually fall over the
coming years.
As mentioned, moderate growth in economic activity is anticipated for
2017, and it is expected that the Government will increase gross fixed
capital formation, taking advantage of the execution of the new European
funding programme. On the other hand, the predictable improvement re-
garding the situation in Angola and the largest economic growth in the
Euro Zone will also make a positive contribution. But despite the growth in
earnings and the improvement in the job market, household consumption
should remain at moderate levels, reflecting the high degree of indebted-
ness that still prevails and the low level of savings.
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