IBERSOL | 2019 Annual Report

 The GDP of the UK grew by 1.3% in 2019. Following contraction in the second quarter, the economy bounced back, albeit modestly, to- wards the end of the year. Uncertainty related to Brexit limited shor- t-term growth and conditioned long-term perspectives, depending on the nature of post-Brexit deals to be negotiated with the Euro- pean Union. The Japanese economy grew by 1.1% in 2019, a moderate growth, as a consequence of the robustness of the labour market and internal demand, as well as the favourable monetary policy and the impact of the Tokyo Olympics. The situation in Portugal Recently published figures from the Portuguese Central Bank and the National Statistics Institute indicate that the Portuguese eco- nomy grew by 2% in 2019, pointing to a slowdown of economic activity and reflecting a steadily vibrant internal demand – amongst which the acceleration of the GFCF stands out – and a slower gro- wth of exports, due to less favourable external demand. The slowing of growth in exports and industrial activity contrasts with the growth in the services sector, that has allowed for a con- tinuation of a favourable situation in the labour market. Employ- ment is expected to continue to grow, but at a progressively slower rate and the unemployment rate will therefore continue to diminish, from 7% in 2018 to a projected 5.6% in 2021. The expected evolution of internal and external demand will be off- set, however, by an increase in imports higher than that of exports, leading to deficit in the goods and services balance, following the surpluses registered between 2013 and 2018. Inflation, measured according to the variation rates of the HICP, di- minished significantly in 2019, from 1.2% to 0.3%, reflecting a steep drop in the price of energy. Following significant growth in 2018 (3.1%), private consumption 8