"Immigrants are essential for Portugal's future" absent
Portugal's economic landscape has been shaped by several significant factors, with labor and human mobility playing a crucial role. In a speech at the commemorative session of the 46th anniversary of the Polytechnic Institute of Coimbra, Governor of the Bank of Portugal, Mário Centeno, highlighted these factors.
The tourism sector significantly contributes to Portugal's economy, accounting for about 15% of GDP. The services sector, including finance and real estate, also plays a vital role in driving economic activity. Investments in renewable energy, such as solar and wind power, have been pivotal, enhancing Portugal's competitiveness and attractiveness for investment. Infrastructure improvements, particularly in renewable energy, have also been key. The expansion in digital services has supported economic growth by offering new opportunities and job creation.
Despite these positive developments, Portugal's economy has faced challenges. Between 2008 and 2014, investment in housing construction fell by 83%, and production in the housing construction sector decreased by approximately 60% during the same period, which corresponds to the global financial crisis and the intervention of the 'troika' in Portugal.
Governor Centeno emphasized that the phenomenon of labour and human mobility is crucial to the success of economies and societies in Europe and Portugal. Approximately two-thirds of the increase in production in Portugal over the past five years is attributed to the increase in human and labour mobility in Portugal. Over the last ten years, wages paid in Portugal have almost doubled, with the sectors paying above-average wages being scientific activities, information, and communication.
However, wages in Portugal remain relatively low compared to other Western European countries, leading to talent outmigration, particularly among young professionals. To address this issue, labor market reforms, including better education and training in critical areas like digital technologies and management, are considered essential. Immigration policies and strategies to reverse demographic trends are also considered essential for long-term economic sustainability.
The governor noted that increased employment and increases in the average wage are the main reasons for the dramatic rise in the average wage in Portugal. The minimum wage in Portugal has also increased, and the most dynamic industrial sectors in terms of qualifications have contributed most to Portugal's evolution.
In conclusion, while Portugal's economy benefits from tourism, renewable energy, and digital services, addressing labor market challenges and improving human mobility through immigration and education reforms are essential for sustained growth and wage increases. Governor Centeno's term as head of the Bank of Portugal ends on the 19th, marking the end of a period that has seen significant changes in Portugal's economic landscape.
[1] Source: European Commission, Directorate-General for Economic and Financial Affairs [2] Source: Bank of Portugal [3] Source: Portuguese Ministry of Labour and Social Solidarity
1) In light of Governor Centeno's speech, the services sector, including finance, has been instrumental in driving economic activity in Portugal, complementing the tourism industry's significant contributions to the country's GDP.
2) As Portugal faces challenges in retaining talented professionals due to relatively low wages compared to other Western European countries, proper labor market reforms, such as better education and training in digital technologies and management, and immigration policies are essential to reverse demographic trends and ensure long-term economic sustainability.
