Portugal has come a long way. While the country was considered one of the major weak links in the eurozone at the height of the 2011-2012 financial crisis, Standard & Poor's noted the improvement in its economy and budget position, and raised its credit rating from BB+ to BB+. BBB-. Thus, Portugal leaves the category of investments considered speculative, which it entered at the beginning of 2012, and returns to the “investment” category, that is, investments that are considered relatively low-risk.
“We believe that the interest rate gap with most European countries will narrow now and this is very important for investors as well, because they are watching spreads closely, sometimes more than current yields,” Portuguese Finance Minister Mario Centeno told Reuters. . “We are now better prepared for any developments in monetary policy in Europe,” he said.
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In a press release, S&P said it expects average annual growth of more than 2% over the 2017-2020 period, compared to +1.5% previously. Its estimates also indicate the need to achieve the annual budget deficit target of 1.5% of GDP this year.
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On the verge of bankruptcy in 2011, Portugal imposed a radical course of austerity and real structural reforms. The country has thus regained its competitiveness, cleaned up its public finances, cut the unemployment rate in half, and can now start spending again… Here you can find the investigation conducted by our Filipino journalist Robert about… Lessons from Portugal to France.
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