Below potential

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The Portuguese economy emerged from recession in 2004, driven by exports and private domestic demand. Real GDP growth is expected to pick up further and reach 2.75% in 2006. By any measure, the economy would still not be operating at its potential at the end of the projection period. As a result the inflation differential vis-à-vis the euro area should remain small.
Fiscal consolidation remains a challenge for policymakers. Reliance on large one-off measures to keep the deficit below 3% of GDP has become the norm since 2002. These should be replaced by strict controls on spending and the implementation of already-approved reforms should be accelerated. A radical reform of the pension system is also needed to ensure the long-term sustainability of public finances.
Population (000s), 200310 449
Area (000 sq km)92
GDP (Billion USD), 2003146.8
Life expectancy at birth (Women, Men), 2002 80.5, 73.8
Total labour force (000s), 20035 419
Government typeParliamentary Democracy
Indicators% change unless otherwise indicated
GDP growth1.52.22.8
Household savings ratio12.812.812.4
Consumer price index2.52.01.8
Short-term interest rate (%)
Unemployment rate (%)
General government financial balance (% GDP)-2.9-3.0-3.8
Current account balance (% GDP)-6.3-6.3-6.3
Source: OECD© OECD Observer No 245, November 2004

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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