Portugal: Spending discipline needed

Stronger growth in Europe spurred a pick-up in exports and GDP growth in 2006. The recovery is expected to gain momentum in 2007 and 2008. The significant output gap and high unemployment should lead to a moderation in wage claims and reduce inflation to the euro area average.
It is imperative that the government achieves its fiscal consolidation goals, which will require strong discipline on the expenditure side. This will contribute to long-term improvement in economic performance. Lifting the level of human capital and increasing competition in the domestic market are also essential for raising productivity and improving Portugal’s flexibility to adapt to external shocks.
Population (000s), 200510 563
Area (000 sq km)92
CurrencyEuro
GDP (Billion USD), 2005209.9
Life expectancy at birth (Women, Men), 2003 80.5, 74.2
Total labour force (000s), 20055 545
Government typeParliamentary Democracy
Indicators% change unless otherwise indicated
200620072008
GDP growth1.31.51.7
Household savings ratio9.49.59.7
Consumer price index3.12.01.8
Unemployment rate (%)7.57.47.0
General government financial balance (% GDP)-4.6-3.7-3.4
Current account balance (% GDP)-8.8-9.2-9.9
Source: OECD©OECD Observer No. 258/259, December 2006


Economic data

GDP growth: +0.2% Q4 2019
Consumer price inflation: 1.7% March 2020
Trade (G20): -0.1% exp, -1.3% imp, Q4 2019
Unemployment: 5.6% March 2020
Sharp drop in OECD leading indicators point to darker outlook: Last update: 14 May 2020

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