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Why Portugal's Economy Needs a Bold Shift Toward Industrial Policy

Tourism dominates, but is it enough? A podcast unpacks why Portugal's economic resilience may hinge on reviving industrial strategy—before it's too late.

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1 min read
The image shows an infographic poster depicting the economic effects of the TPP. It features a map...
The image shows an infographic poster depicting the economic effects of the TPP. It features a map of the world with various countries highlighted in different colors, along with text that explains the various economic impacts of the United States. The map is divided into different sections, each representing a different country, and each section is further divided into subsections that provide further information about the economic impact of theTPP on the economy. The infographic also includes statistics such as the number of people affected by the TPP, the amount of money spent on goods and services, and the impact it has had on the global economy.

Why Portugal's Economy Needs a Bold Shift Toward Industrial Policy

The podcast 45 Graus has become a platform for deep yet accessible discussions on pressing economic issues. Hosted by economist and professor José Maria Pimentel, the show invites leading thinkers to explore topics often overlooked in mainstream debates. In a recent episode, the focus turned to industrial policy—a subject gaining renewed attention across Europe. Portugal's economy leans heavily on tourism, raising questions about its lack of high-value industries. For decades, industrial policy was dismissed as outdated, linked to failed state interventions and protectionism. But perspectives have shifted, with countries like China proving its potential.

China's strategic approach since the 1980s turned it into a global industrial powerhouse. By 1994, it led the world in steel production, thanks to coordinated investments in infrastructure, banking, and transport. More recently, initiatives like *Made in China 2025* pushed advancements in solar panels, electric vehicles, and semiconductors. The current *15th Five-Year Plan* prioritises technological independence, green energy, and domestic production of critical components—from sensors to industrial software. Ricardo Paes Mamede, a political economy professor at ISCTE and a guest on *45 Graus*, argues that the state must play a stronger role in shaping economic structures. He points to success stories like South Korea and Hong Kong, where targeted policies drove long-term growth. The podcast, which releases new episodes every two weeks on Wednesdays, offers a space for such conversations—blending rigour with a relaxed pace.

The debate around industrial policy is evolving, with Portugal's economic direction under scrutiny. Experts like Mamede highlight its potential to build more resilient, high-value sectors. As 45 Graus continues to explore these themes, the discussion may influence how policymakers view the state's role in economic transformation.

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