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Europe 2020 in Portugal

Economic situation and outlook

Portugal’s economy has been on a moderate recovery path since mid-2013 amid rising business and consumer confidence and improving financing conditions. The recovery was initially led by exports but has increasingly become broad-based as private consumption, in particular, has picked up. Labour-market conditions have been improving, with employment increasing and the unemployment rate falling, but the absorption of the large pool of long-term unemployed remains a challenge. Recent labour market improvements are largely the result of a reduced rate of job destruction, while the rate of job creation has increased more moderately.



In-depth economic review 2016

Portugal is experiencing excessive macroeconomic imbalances. The large stocks of net external liabilities, private and public debt and a high share of non-performing loans constitute vulnerabilities in a context of elevated unemployment. The current account has adjusted to a small surplus. While households' indebtedness has declined, corporate debt is still weighing on firms' performance. Public debt is expected gradually to decline from a very high level. Policy action has been taken regarding the financial sector, access to finance, insolvency procedures, labour market functioning, education and long-term fiscal sustainability. However, policy gaps persist regarding product and services markets, corporate debt restructuring, fiscal issues and selected areas of the labour market.

Read a complete analysis of Portugal's economy in the country report 2016 pdf - 2 MB [2 MB] português (pt)

See how Portugal compares with other EU Member States in key areas.



2015 recommendations in brief

The Commission has made five country-specific recommendations to Portugal to help it improve its economic performance. These are in the areas of: public finances, pensions and taxation; wage-setting; labour market; financial sector; transport.



European Semester Documents for Portugal