portugal

How Did Portugal Reduce Current Account Deficit?

How Did Portugal Reduce Current Account Deficit?

Readers Question: Can you tell what Portugal has done to reduce the Current Account GDP deficit so steeply? The reduction in the Portuguese deficit is quite striking. In researching the answer to this question, I came up with a different post – The Portuguese Economic crisis From what I can gather, essentially, the rapid reduction in the current account is due to a sharp fall in consumer spending on imports, combined with some growth in exports – helped by improvements in unit labour costs. However, bear…

Portugal Economic Crisis

Portugal Economic Crisis

In the past few years, the Portuguese economy has suffered a deep recession and rising unemployment. The outlook for 2013 is also grim, with the government proposing more tax increases and spending cuts in an effort to meet deficit reduction targets. What caused the Portuguese economic crisis? In the period Q4 2o10 to Q4 2012, the Portugese economy has declined over 5.3% Portugal Unemployment With the rapid drop in real GDP,…