IBERSOL Annual Report 2018

The Year of 2018 In 2018 the Chinese economy grew 6.6%, reflecting a gradual slowdown, due to the decrease in the overall weight of the exporting industry, com- pensated, partly, by an increase in public investment in infrastructure, with GDP growth rates of 6.2% expected for 2019 and 2020. The UK saw the growth rate of its GDP fall from 1.8% in 2017 to 1.4% in 2018, in a context heavily affected by uncertainty regarding Brexit. It is expected to grow 1.5% in 2019, taking into account the effect of the tax incentives which have been announced. The growth of the Japanese economy slowed to 0.9% in 2018, with tax incentives expected to give it a boost to 1.1% in 2019. Situation in Portugal Recent data from the Bank of Portugal indicates that the Portuguese economy grew 2.1% in 2018, with a forecast of 1.8% growth in 2019 and 1.7% in 2020, in a continued trajectory of slowing growth, influenced by the reduction of the expansion of the Euro Zone’s economy, which will affect the growth of exports. Economic conditions improved significantly over recent years, with the GDP bouncing back to pre-crisis levels. The unemployment rate dropped by about 10 percentage points since 2013, and was around 7% at the end of 2018. It is expected to continue to drop over the coming years. The major increase in tourism and exports from the manufacturing in- dustry has contributed to, and sustained, the economic recovery. The growth of the tourism sector, which represents 10% of employment and which has also affected the real estate sector, began to slow in 2018, with the stabilisation of the number of non-resident tourists. Investment in equipment has risen and residential real-estate is riding high, stimulated by the rise in housing prices, following an increase in internal demand due to the normalisation and expansion of family ex- penditure following rises in salaries. Corporate gross fixed capital for- mation has risen significantly, and should be a full 8% higher in 2021 than what was registered in 2008. 26