Portugal remained in 34th position in the World Economic Forum’s world competitiveness ranking, which analyzed 141 economies, due to methodological changes with global impact. Nevertheless, Portugal has improved above all in technological innovation.

Portugal remained in 34th position in the World Economic Forum’s global competitiveness ranking, which analyzed 141 economies, due to methodological changes with global impact. Nevertheless, Portugal has improved above all in technological innovation and worsened in the labor market.

Through mainly surveys of entrepreneurs, the teams collaborating with the World Economic Forum (in Portugal is the Association for the Development of Engineering and the Forum of Directors and Company Managers) focused on 12 fundamental pillars, analyzing responses from 149 companies.

According to the results released on Wednesday, October 9th, although Portugal’s overall position remains, the competitiveness of the Portuguese economy falls by seven pillars, rises by four and remains at one.

The biggest drop occurs in the labor market pillar (Portugal falls 14 positions), ie, this is the area that most penalizes the competitiveness of the economy, according to the surveyed entrepreneurs. Taxes and labor mobility, the difficulty in hiring and firing are the specific points where Portugal has the worst positions worldwide in this matter.

Still, the stability and capital ratios of banking are the two specific issues where Portugal has the lowest positions compared to the other economies analyzed: it stands at 123rd and 125th, respectively, almost at the bottom of the table.

By contrast, it was in the pillar of innovation and technology that Portugal rose the most. Broadband Internet access, according to the Forum, brings significant gains in competitiveness to the economy, as Portugal ranks 16th on these issues.

Low inflation, the absence of terrorism and access to credit are the components where Portugal ranks best compared to other countries: it ranks first in all.

By Jornal de Negócios, October 2019

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