Financial Times praises Portugal – ‘the country’s recovery is underway’

By • Apr 23rd, 2012 • Category: Property News & Info

The Financial Times (FT) writes that Portugal is making the right choices in solving its structural problems.

The FT today examined the situation of the Portuguese economy, stressing the importance of structural reforms, which have begun to bear fruit.

According to the influential international newspaper, the Portuguese Government is following the austerity programme and the reforms that are vital to economic recovery, in an country that is in the deepest recession for more than 30 years, with an unemployment rate at a record level (15% in February).

The newspaper found that Portugal has a “huge appetite” for structural reforms, but stresses that the withdrawal of the Portuguese Government from the TGV railway line between Lisbon and Madrid, has contributed to an uncertain future for the European high-speed network.

The FT wrote that EU structural funds have contributed greatly to the modernisation of Portugal and the improvement of living standards in the country. However, some investments in infrastructure, and some public-private partnerships, have had questionable benefits and a lack of fiscal discipline has led to the current situation.

The “economic recovery should begin next year,” driven by increased exports, while banks expect a “better situation” soon.

The newspaper stressed that “external pressure is the best opportunity for change” and argues that after the crisis, Portugal will continue to focus on competitiveness.

Regarding the privatisation programme, the FT considers that this is perhaps the major point of conflict, despite being one of the highlights of the electoral program of the prime minister, Pedro Passos Coelho.

The British newspaper refers to Portugal’s cultural ties with Brazil, Angola and Mozambique that have opened doors to foreign investment in Portugal, as well as facilitating the entry of domestic firms into these countries’ markets.

“After all, this small nation of the Atlantic found most of the new world, which until then was unknown to Europe, making this country one of the most important of the sixteenth century.”

 

The newspaper adds that the tourism sector, despite the increase in VAT, has several factors in its favor, while in the energy sector “uncertainty in its regulation” threatens the prospects for the industry.

In summary the Financial Times’ report finds many positive signs in the Portuguese economy, leading to the conclusion that the country’s recovery is underway.

 

Source: Algarve Daily News

- Business Development - Originally from Germany, Frank joined Quinta Properties in the Summer of 2008 and is establishing business partners in Germany, Switzerland and Austria, and is an integral part of the sales team.
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