"Portugal looks more like Germany than Spain," according to the view of the Financial Times which recognises that the employment statistics fail to reflect the number of workers who have left the country.The FT discusses Portugal’s almost unique recovery experience but does not lay it on too thick, as many of the workers that have left will never return.
The Financial Times article published today, Wednesday April 4th, analyses some of the key economic indicators in its FT Alphaville blog, dedicated to investors.
The analysis focuses mainly on the Portuguese labour market indicators, based on the numbers published by Eurostat.
"Portugal's experience of the euro crisis was a bad hybrid of Greece and Italy. However, today it is much better than both," reads the article, stating that the
Portuguese labour market, "looks better today than anywhere else since the start of the Eurostat data series in mid-1990."
"This experience is almost unique in the Eurozone. From the point of view of the number of people in employment, Portugal looks more like Germany than with, for example, Spain," the newspaper says.
Another important aspect of the post-crisis situation in Portugal is the national accounts, with the FT highlighting the decline in the deficit, excluding the huge cost of recapitalising Caixa Geral de Depósitos.
The FT sees a more favourable balance of trade in Portugal, with an increase in exports and a reduction in imports and with tourism representing one third of the improvement since 2008.
Although there have been no significant increases in private consumption or public investment, the FT points to an increase in private investment by companies financed by those banks most exposed to the European Central Bank's active buying programme - with more purchases of equipment and machinery in the construction sector.
But, not everything is good news. The FT recognises that the employment statistics used omit the reality of the emigration of Portuguese workers and fewer foreign workers coming to Portugal.
"Hundreds of thousands of unemployed Portuguese have left for parts of the European Union where they have been able to find work, particularly in Germany and the United Kingdom. This flatters the employment rate, but represents a large - and probably permanent - loss of human capital," reads the commentary.
Comments
The weather, during the winter months in Southern Portugal is amazing compared to Northern Europe and I noticed that there was a lot more older people who migrated here for this reason.
The Portuguese tourist department should consider sending representatives to the various holiday and travel trade fair's in Northern Europe to sell the Algarve as a winter destination, but should produce a list of reduced price rental accommodation that wishes to be included in the initiative. For instance a one bedroom apartment could be rented for €450 per month, the benefits for the owner is that the winter clients are mature people and less likely to cause damage to the property and they are providing security, heat and they are responsible for keeping the apartment tidy and clean. This would be beneficial to the whole community in the Algarve as it could become established as a winter sun destination and some of the businesses could remain open all year round.
The cost of living in Portugal is much lower than the country's that you mentioned, but the government would need to give serious consideration to the minimum wage as it will be the deciding factor for Portugal's citizens living abroad.
What the government may need to give consideration to, is that these citizens who live and work abroad now have a different outlook on life, they will not be willing to return to a life that does not give them a good living standard.
There are schemes for returning workers but with higher minimum wages in European countries (Switzerland €2,646, Ireland €1,509) the lure of just over €500 a month back in Portugal seem not too appealing for many of the 350,000 - 400,000 lost during the recession.
They will need to be assured that, if they return to work in the hospitality industry, that there will be work all year round.
This can be achieved if government encourage rental accommodation to reduce their rental charges by more than half during the winter months to draw in more retired people to rent the empty houses that are vacant all winter, this will ensure that coastal communities remain open all year round and providing jobs all year round.
and restaurants to remain open