The Minister of Foreign Affairs, Augusto Santos Silva, has decided that Portugal should increase exports of goods, and warns that the country cannot become "tourism-dependent" so must diversify.
In terms of exports, "the country's progress has been remarkable in recent years," said the minister, adding that "in 2011, the exports of goods and services were worth 30% of the Portuguese GDP. In 2015 we exceeded the target of 40%. Are we happy? We are. Are we satisfied? No. We want more, we want exports worth more in terms of GDP and that the relationship between goods and services in these exports improves as well," said the minister, to an audience of 280 young people who are part of the ‘INOV contact’ programme.
Santos Silva, a Professor and Sociologist, said that the Portuguese trade balance has been positive in each year since 2012, but stressed that the positive balance is achieved "because the growth in services compensates for the deficit in goods" and tourism and travel account for almost half.
"We must continue to invest heavily in tourism, one of the sectors with more progress but we do not want to become tourism-dependent. We want to diversify," maintained Silva, defending the need to "have a number of priorities and not to be dependent on just one sector."
The Minister said that textiles, footwear and food products, all traditional sectors of the Portuguese economy, have been modernised and that he wants to support the 22,000 exporting companies, of which 18,000 have export turnovers of less than €1 million per year, because "that is where the jobs are, the pulse of the country’s economic and social life and tomorrow's champions."
To do all this, the government has created a structure to look at capitalisation of exporters, adding that "the other equally decisive plan, which has taken up much government effort, is the stabilisation of the financial and banking system, because this allows the financing of companies."
Another cunning idea shared with his audience was that Portugal should "always be on the lookout for opportunities wherever they arise: our limit is the planet Earth."
The minister cited World Bank forecasts for 2016 and 2017 indicating that the largest growth is in India, China, Asia Pacific, Middle East, North Africa and sub-Saharan Africa, saying, "We want to be there."
When talking of worldwide challenges, Santos Silva said that Portugal should prepare to be "an active agent in economic globalisation."
Comments
For example - by penalising one but not the other of the holders of identical bonds in BES. The Portuguese contract holders suffering, but for now, the English contract holders not so. Then factor in the English courts deciding their contracts were valid and deserving compensation; not just the amount lost and any interest but legal fees. Perhaps even some penalty for time wasting.
This will fall on the Portuguese Government which will find some way of not paying. A new law. In a short time inward investment switching entirely to English or US law but more worryingly for the European Union in the medium term; serious investors giving up on Portugal - which reflects on the rest of the European Union. Choosing emerging markets like Uzbekistan that stress rock solid government backed safeguarded guarantees of inward investments.
Truly an opportunity missed.
This is not so much old news, as do nothing news. You achieve nothing by looking at statistics; and if there is indeed anyone who thinks that the banking system in Portugal is anything approaching stable, then he is completely out of touch.