The Economy of Portugal
The Debt Crisis and the 2011 Bailout
After the euro, growth slowed and debt rose, and in 2011 Portugal accepted a €78 billion bailout with strict conditions.
Portugal shared the euro-area storm.
Weak growth
In the 2000s productivity growth was poor, and debt increased.
Bailout
In 2011, the EU and IMF lent €78 billion to Portugal.
Austerity
Cuts in wages, pensions and public jobs and tax rises followed.
Exit
Portugal exited the programme in 2014.
A pension cut
Retirees saw pensions reduced as part of the adjustment.
Assuming every bailout country had the same story
Causes differed between countries.
Key takeaways
- Portugal needed a €78bn bailout.
- Austerity followed.
- The programme ended in 2014.
- Productivity growth was weak.
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