IMF Staff Country Reports

Portugal: Selected Issues

Publication Date:

October 20, 2005

Electronic Access:

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Summary:

This Selected Issues paper on Portugal reviews the considerations regarding productivity slowdown. The favorable evolution of income growth from the 1970s to the mid-1990s in Portugal was associated with above-average productivity growth but also reflected a more moderate decline in the amount of hours worked than that experienced in other countries in Europe. Portugal was an outstanding performer with double-digit productivity increases in large several high-tech industries. The evidence suggests that the negative impact of high labor adjustment costs on productivity is more intense for small- and medium-size companies and depends on the nature of wage-bargaining systems.

Series:

Country Report No. 2005/376

Subject:

Banking Expenditure Fiscal consolidation Fiscal policy Labor productivity Production Productivity Total factor productivity