The Economy of Portugal
The Carnation Revolution and the Return of Democracy
In 1974 a peaceful military coup ended the dictatorship, and the colonies gained independence, reshaping the economy.
A revolution changed everything.
The coup
On 25 April 1974 army officers overthrew the regime with almost no bloodshed, and citizens placed carnations in gun barrels.
Decolonisation
Angola, Mozambique and others gained independence, and hundreds of thousands of settlers returned to Portugal.
Nationalisation
Banks and large industries were briefly nationalised, later partly reversed.
Democracy
Stable democracy and a market economy took shape in the following years.
Returnees
Many families returning from Angola had to find housing and jobs in a country already struggling.
Thinking the revolution immediately made Portugal rich
Adjustment took years.
Key takeaways
- The revolution came in 1974.
- The colonies became independent.
- Nationalisations followed.
- Democracy replaced dictatorship.
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