The Economy Minister, Pires de Lima, is now quite satisfied with Portugal’s departure from a technical recession, citing figures from the Office of National Statistics which revealed today that the country's economy grew 0.2% in the third quarter of 2013, compared with the previous quarter.
Pires de Lima said, "there are clear stabilizing elements for the Portuguese economy powered by two important variables: the balance of exports and imports, and the stabilization of domestic demand especially of private consumption."
Pires de Lima said we all have to "work hard so that this growth trend can be consolidated."
The technical recession may be at an end but everything still seems the same…
Today the Minister of Employment said that that 'wage adjustment' in the private sector have been achieved and he expressed his complete disagreement with the IMF which currently is insisting on greater labour flexibility in Portugal – i.e. lower wages and less stable conditions of employment.
"Objectively, there is a difference of opinion between the Government and the IMF over the labour market. The Portuguese Government considers that the adjustment, particularly in the private sector, has been achieved and considers that there now is a model of development in Portugal based on low wages,” said Mota Soares whose ministerial salary was not revealed.
Mota Soares insisted that "the private sector in Portugal has made a number of adjustments" and that " the time is now for the growth of the economy, the recovery of jobs and of workers 'motivation' so the country can complete the Troika programme in June next year.
His comment that “the private sector has made adjustments” made this seem like a voluntary action when in fact the government has just helped itself to more tax from existing wage levels.
'Following the latest assessment by the Troika, the IMF said the government should have gone further by taking a series of measures to ensure that the minimum wage for young workers was lowered. The Government discouraged this measure," said the Minister, on safe financial ground as young workers are a small part of the workforce with 400,000 of them currently supporting themselves by means unknown.
Comments
"Stabilization of domestic demand especially of private consumption." What a nice remark, it is obvious if you have nothing to spend anymore the domestic demand will stabilise.
Shop owners and other retailers are very happy with this notice. They "notice" this stabilisation for a long time. We have a minister with vision