Portugal is recovering, with important reforms now bearing fruit. Fiscal consolidation has made Portugal’s public finances stronger. Portugal has gained access to market funding at lower rates than most of us would have imagined two years ago. Despite many improvements, Portugal’s recovery remains a work in progress.
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Having been hit hard by the global crisis, the Portuguese government has taken action to put its economy back on track, and to correct external and budgetary imbalances. This document highlights some key priorities to support economic growth and competitiveness through further productivity-enhancing structural reforms.
Having been hit hard by the global crisis, the Portuguese government has taken action to put its economy back on track, and to correct external and budgetary imbalances. Public finances have strengthened, and the current account deficit has closed on the back of gains in competitiveness and improvements in export performance. Portugal has also been able to reduce income inequality and relative poverty, a major accomplishment during a severe crisis with record levels of unemployment. As Portugal successfully exits the EU-IMF-ECB-supported programme and emerges from recession, it is more important than ever to build on these achievements.
At the request of the Portuguese authorities, the OECD has carried out an assessment of the impact of the reforms implemented to date on the economy’s longer-term growth outlook. The analysis is based on OECD indicators of the restrictiveness of Product Market Regulation (PMR) and the strictness of Employment Protection Legislation (EPL). It updates the OECD report Portugal: Reforming the State to Promote Growth, published in 2013.
According to the OECD’s Going for Growth exercise, Portugal is among the OECD countries with the best recent track record of responsiveness to structural reform recommendations. The reforms undertaken since 2009 to promote competition in product markets and enhance the dynamism of the labour market are expected to raise productivity and potential GDP by at least 3.5% by 2020.
Drawing on the OECD’s expertise in comparing country experiences and identifying best practices, the Better Policies series tailors the OECD’s policy advice to the specific and timely priorities of member and partner countries, focusing on how governments can make reform happen.
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After two decades of strong economic growth and convergence in living standards towards the levels of more prosperous OECD countries, Portugal’s performance weakened in the 2000s, productivity growth slowed and competitiveness deteriorated. Restoring Portugal’s potential for strong, inclusive growth calls for a comprehensive reform of the State.
Today the OECD is publishing a report on Portugal's challenges as far as structural reform is concerned. The OECD is an outstanding reference for policy-makers all around the world and I wanted my country to benefit from your skills, experience, and insights, especially on the question of structural reform, said the Portuguese Prime Minister.
L’économie portugaise s’est caractérisée ces dix dernières années par une croissance faible et des déficits volumineux des paiements courants.
Ce document illustre les compromis possibles entre deux stratégies de consolidation budgétaire au Portugal : respecter les cibles budgétaires nominales du programme de l’Union Européenne et du FMI ou laisser jouer les stabilisateurs automatiques tout en respectant les objectifs de déficit structurel primaire impliqués par le programme.
En raison de la lenteur de la croissance et d’une situation budgétaire relativement médiocre, la dette publique du Portugal était en augmentation depuis près d’une décennie lorsque la crise mondiale a frappé, creusant sensiblement le déficit.