Per capita growth declined steadily over the 2000s. Low productivity is at the root of a large income gap vis-à-vis the OECD average. Several structural bottlenecks are holding back productivity and a new wave of structural reforms is needed to raise the economy’s growth potential.
Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.
Dias, D., C. Robalo Marques and C. Richmond (2016), “Afetação de recursos em Portugal: comparação entre setores”, Revista de Estudos Económicos, Banco de Portugal, 2:1, pp. 31-50.
Arnold, J. and N. Barbosa (2015), "Structural policies and productivity: Evidence from Portuguese firms", OECD Economics Department Working Papers, No. 1259, OECD Publishing, Paris.
Amador, J. e A. Soares (2013). “Competition in the Portuguese economy: estimated price-cost margins under imperfect labour markets”, Working Paper Series, No. 8, Banco de Portugal.
Braguinsky, S., L. Branstetter and A. Regateiro (2011), “The Incredible Shrinking Portuguese Firm” , NBER Working Paper Series, No. 17265.Cabral, L. and J. Mata (2003), “On the Evolution of the Firm Size Distribution: Facts and Theory”, American Economic Review, 93:4, pp 1075-1090.
Productivity - enhancing institutions