Portugal has slipped to 39th position of 61 countries in the latest IMD World Competitiveness Scoreboard with Turkey rising, Spain gaining ground and post bail-out Ireland now in the top ten
Competitiveness is a frequently used word in political speeches, alongside ‘sustainability’ but at least competitiveness can be scored and Portugal had not done well with rising unemployment, a banking system on the edge of madness and poorly performing exports.
Third on the list is the good old United States, then Hong Hong in second place with Switzerland winning the accolade.
Portugal’s weaknesses in attracting and keeping businesses include the unemployment rate - especially youth and long-term unemployment - and the concentration of exports in certain sectors, a problem highlighted today by the Finance Minister. Also, Portugal’s public debt problems, its justice system and pensions are noted and pushed Portugal down the list.
The results pinpoint the challenges facing the country in 2016, namely the public deficit, personal and corporate debts and the need to promote a "healthy and well capitalised banking system to attract and retain foreign investment."
The list of areas to improve is a long one and includes the need for stable budgetary policies, an improvement in skills levels, reforms in the labour market to encourage flexibility, increasing productivity and the need to maintain a ‘sustainable’ trade balance.
