Portugal, exporting country
It went unnoticed by many, but it was certainly one of the most important news about the Portuguese economy. In 2022, exports from Portugal would have reached 50% of GDP, anticipating the target set by the government by five years.
This impressive trajectory must be recorded.
At the beginning of the century, the country had to face a triple shock: the introduction of the euro (and the consequent loss of monetary policy autonomy as an economic tool), China’s accession to the World Trade Organization (and the consequent opening of the European market to Chinese competition) and the major enlargement of the EU to the east (with the simultaneous entry of 10 countries).
When Portugal faced these shocks, the national economy was marked by low levels of monitoring (which constituted a true structural deficit) and low levels of innovation, generated in an economy based on the model of low income and low added value.
Let us remember that it was precisely these characteristics that reached the particularly severest shock, confident for the mediocre growth in the first years of the century. Neither Portuguese companies were able to compete with cheaper Chinese products, nor was the country attractive enough for the installation of new companies, which were using more qualified labor in eastern countries that had just entered.
Portugal therefore had to undertake a structural change in its economy, only interrupted the last time the right was in government (and with the blessing of the Troika), through a commitment to competitiveness through wage devaluation – a strategy that failed, but luckily it didn’t last.
The truth is that, contrary to what many on the right warned, the competitiveness of the Portuguese economy has not been sacrificed with the wage increases since 2016, which were fundamental to increase demand directed at companies, boost the economy and create jobs. Not least: since then, companies have resumed their modernization processes, namely with the support of European funds, making their specialization profile effective.
The result is something the country can be proud of: if 20 years ago the weight of exports in GDP was only 27%, today we are close to doubling it.
Footwear, textiles, tourism… add up to examples with an encouraging performance. The footwear industry, for example, achieved the best results ever in the first half of 2022, with a year-on-year increase of 27.5% in turnover. In textiles, the trend was equally positive (+18.6%). In tourism, everything also points to a year of record revenues.
In addition to the sectors where Portugal has already been internationally recognized, with good news illustrating that the economic fabric is no longer the same. In telecommunication, IT and information services, exports grew by more than 250% in the last 7 years. Portugal is today the birthplace of many new economy companies and the destination of many others.
It is this reconfiguration of the national economy that has provided us with sustained growth above the EU average since 2016 (with the exception of 2020, the year in which the pandemic was more serious). It is also what allows us to aspire more: it expressed the trajectory of growth, continuing to improve benefits and the standard of living of the population.
These aren’t New Year’s wishes; are realistic goals for the legislature.
16 values
Joao Galamba
He leaves the Secretary of State for Energy with excellent results and praise from the entire sector. Receive the prime minister’s trust for a portfolio with great challenges and political centrality.
MEP