Monday, May 18, 2015

A year after the Troika left, Portugal continues to austerity – The Economist

One in five Portuguese live below the poverty line, earning less than 411 euros a month.

A year after escape guardianship of its international creditors, Portugal has started to recover at the macroeconomic level, but its population is still suffering the effects of austerity applied in recent years.

With a controlled deficit, record numbers in the sector tourism, a recovery in the housing market and rising exports and investments, large numbers have clearly improved. For this year, the government expects economic growth of 1.6 percent.

The left opposition accused the Conservative government of overzealous apply the doctrine of austerity and of being “more German than the chancellor Angela Merkel “.

But the executive insists on giving priority to reducing the budget deficit and five months of the legislative elections, Pedro Passos Coelho, Prime Minister has a clear strategy.

” More than ever, I am convinced that we must continue on the path we have taken, “he said.

A street, the impression is very different from what they believe the macroeconomic figures.

“The numbers are better, but the life of the Portuguese has changed very little. A year after the era of the Troika, the economic miracle is more of a mirage, “said Domingos Amaral, Professor of Economics at the Catholic University of Lisbon.

” Unemployment remains high, debt public also and taxes are at a record high. The growth is still timid and the Portuguese continue to migrate “added Professor Amaral.

The departure of the inspectors from the troika of creditors (European Commission, International Monetary Fund and European Central Bank), celebrated with great pomp on May 17, 2014, allowed Portugal to regain their sovereignty, but not stop the sacrifices.

Currently, about a Portuguese in five lives under the poverty line, earning less 411 euros per month.

The public deficit was reduced to 4.5% of gross domestic product (GDP) in 2014, but the debt has continued to rise and reached 130% of GDP, a level higher than the 2011.

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