Portuguese economy will only start growing in 2009.jpg

Portuguese economy will only start growing in 2009

THE GOVERNOR of the Bank of Portugal, Vítor Constâncio, said last week that the current government investment schemes would only bear fruit in the long term.

The financial wizard stressed that unless the government took serious steps to radically reform education, justice, public administration and public spending, the country would continue in a state of stagnation and economic crisis.

Constâncio said that current economic forecasts were considerably less optimistic than those of the government with a return to significant growth unlikely within the next three years. He also said that the recent spate of government-led investment initiatives, such as the Ota airport and TGV projects, while welcome, would only see results in the long term.

“Until the government reforms education, justice and public administration, these organisations will prove the main barriers and impediments to economic growth, fuelling the cycle of stagnation,” he said. “Investment projects help but do not ultimately solve the structural problems of the country, particularly those concerning education.”