The Economy of Portugal
Challenges: Productivity, Brain Drain and Ageing
Portugal's long-term problems include low productivity, young people emigrating and an ageing population.
Growth needs stronger foundations.
Productivity
Output per worker is below the EU average, partly due to small firms and skills gaps.
Emigration
Many young graduates move abroad for higher pay.
Ageing
A shrinking workforce will burden pensions and healthcare.
Wages
Low wages hold back consumption and encourage emigration.
A graduate abroad
A young engineer earns more in Switzerland than he could at home.
Ignoring wage levels in growth stories
They affect retention.
Key takeaways
- Productivity lags.
- Young people emigrate.
- The population ages.
- Wages are low.
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