Portugal at the tail of Europe β Observer
Promises for economic growth are increasingly fulfilled by Portugal at the tip of the tail of the European Union. In the media it was highlighted that ‘even Romania’ should overtake us in 2024 in GDP per capitaπ§π· In fact, 20 years ago, Romania was at the bottom of this classificationwith a GDP per capita which would correspond to 27% of the EU (Pordata). In 2021, your GDP per capita it was practically equal to that of Portugal, corresponding to 73% of that of the EU. A notable progress, that of Romania.
In the year 2000, after four decades of strong economic growth and convergence, the level of wealth generated by the Portuguese consumed 85% of the value of the EU. It was the best result achieved since the 19th century β see, for example, the article by economic historian Nuno Palmaπ§π· Between 1960 and 2000, Portugal was one of the 10 fastest growing OECD economies. At that time, we experienced characteristics that would achieve the ambitious and mobilizing objective launched by Prime Minister Cavaco Silva to integrate the front platoonπ§π· This velocipedic analogy conveyed the ambition to overcome the structural backwardness of the Portuguese economy in relation to the most closely monitored countries in the EU.
However, the ambition is not fulfilled. Since the beginning of the 21st century, economic growth rates have fallen to very low values, having registered negative values ββin six years. We entered a divergence trajectory again and moved away from the lead pack. In 2021, GDP per capita would correspond to 74% of that of the EU. Between 2000 and 2021, Portugal rose from the 15th to the 21st position in the classification of GDP per capitaπ§π· Thus, as we can see in the figure, Portugal is getting closer and closer to the tip of Europe’s tail.
The fall of Portugal classification of GDP per capita of the EU is very worrying and deserves all the attention it has had in the media. First, a higher GDP is a necessary condition for eradicating the scourge of child and elderly poverty. On the other hand, the removal of the front group traps us in a vicious circle: the most recommended will look for the best career opportunities in other countries, accentuating the impoverishment of the country and weakening its growth potential.
This article is exclusive to our subscribers: subscribe now and benefit from unlimited reading and other advantages. If you are already a subscriber, log in here. If you think this message is wrong, please contact our customer support.