European Semester Winter Package, Country Report, 2018, EC

Page created: Friday, 9 March 2018 16:39GMT

Press Release:  09 March 2018 - Page(s)

The Portuguese economy has continued to recover both in terms of growth and employment. Economic activity has accelerated and has become more broad-based, with investment and exports picking up. Employment grew even faster than GDP, particularly in labourintensive services while wage growth remained subdued. Imbalances are receding in the context of favourable macroeconomic and financial conditions, but public and private debt and the negative net external position remain at high levels. Challenges also remain in terms of labour productivity, the still high income inequality and labour market segmentation as well as the low level of investment. Addressing these challenges would reduce the risk of a slowdown, should the external environment and financial conditions become less supportive