IMF Staff Country Reports

Portugal: Selected Issues

Publication Date:

October 31, 2006

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

A range of indicators point to a competitiveness gap of 10–20 percent with respect to euro area competitors. Closing the competitiveness gap will require an extended adjustment period, even with a jump in total factor productivity (TFP) growth and strong wage moderation. This paper reviews several factors that could help explain the boom and bust behavior of corporate investment. Investor sentiment will recover with the deepening of structural reforms, but high corporate debt level is likely to slow the pace of investment growth in the near future.

Series:

Country Report No. 2006/386

Subject:

Competition Corporate investment Exchange rates Export performance Exports Financial markets Foreign exchange International trade National accounts